Pace of health-care spending subsided in 2022 after pandemic surge: CIHI report


The progress in well being spending seen through the first two years of the pandemic slowed dramatically in 2022, says a report by the Canadian Institute for Health Information.

The whole well being spending in Canada remains to be anticipated to rise by 0.8 per cent this 12 months, nonetheless that is a lot decrease than the 7.6 per cent improve seen in 2021, and the 13.2 per cent surge in 2020.

The annual report launched Thursday mentioned the nation’s well being spending, together with private and non-private expenditure, is projected to be $331 billion in 2022 — or $8,563 per Canadian — and round 12 per cent of the nation’s gross home product for the 12 months.

Chris Kuchciak, the supervisor of well being expenditures on the Canadian Institute for Health Information, mentioned COVID-19 was the primary driver of well being spending progress in the previous two years.

But that modified in 2022.

Kuchciak mentioned the return of health-care companies that had been deferred through the pandemic and demographic adjustments reminiscent of inhabitants progress and an growing older inhabitants are taking up because the drivers of spending progress.

“I liken it to a horse race the place the final two years, COVID was means out in entrance driving spending. That has fallen again into the pack,” he mentioned.

The COVID-19 response fund makes up 4.4 per cent of the entire well being spending in 2022, whereas it was practically 10 per cent in 2021, in accordance with the report.

The report predicts the federal, provincial and territorial governments will spend $14.5 billion to cope with COVID-19 in 2022. In comparability, the COVID-19 response value $32.5 billion in 2021 and $29.3 billion in 2020.

Before the pandemic, progress in well being spending averaged 4 per cent per 12 months.

“In 2022, actually it’s a levelling off a big improve in spending in the earlier two years. But we’re not seeing a return to pre-pandemic ranges of spending,” Kuchciak mentioned.

The slower progress charge comes at a time when the health-care system is dealing with unprecedented challenges with emergency division closures and workers shortages reported throughout the nation.

The expenditures on hospitals, physicians and medicines mixed make up over 50 per cent of well being spending throughout Canada in 2022, the report mentioned.

Kuchciak famous the slower progress in well being spending replicate the financial scenario in Canada, saying the well being expenditures progress slowed down in early 2010s following the recession in 2009.

“We are getting into a interval the place persons are speaking about slower financial progress,” he mentioned.

“When the economic system slows down, authorities’s fiscal positions are likely to deteriorate and there tends to be extra budgetrestraints (on) well being spending.”

CIHI’s nationwide well being expenditure estimates are based mostly on private and non-private sources, together with all three ranges of authorities, insurance coverage corporations and analysis companies, amongst others.


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