Canada expected to spend over $300B on health care in 2021: report

Canada is predicted to spend a document $308 billion on well being care in 2021 amid the COVID-19 pandemic, a brand new report from the Canadian Institute for Well being Data (CIHI) says.

The report, revealed on Thursday, says the nation’s complete well being spending is predicted to have elevated by greater than 12 per cent between 2019 and 2020.

In line with CIHI, this can be a price of spending that the nation hasn’t seen in additional than 30 years.

“That is triple the expansion price skilled from 2015 to 2019, which was regular at roughly 4% per yr,” the CIHI press launch reads.

The information says the nation’s deliberate well being expenditure is predicted to signify 12.7 per cent of Canada’s gross home product in 2021, after a excessive of 13.7 per cent in 2020.

Within the press launch, CIHI President and CEO David O’Toole stated COVID-19 resulted within the “single largest improve in well being spending we have now ever seen on this nation.”

O’Toole stated an growing older inhabitants and the continued pandemic will “little question put extra pressure on our well being methods and take up a bigger proportion of presidency budgets.”

The CIHI report says presently, well being spending in Canada represents round 40 per cent of the nation’s complete provincial and territorial budgets.

In line with CIHI, the spending per individual in 2021 in Canada is forecast to be $8,019.


Brent Diverty, vice chairman of knowledge methods and statistics at CIHI, stated whereas well being spending all the time will increase general in Canada, he expects prices associated to managing the outbreak will even drop because the COVID-19 pandemic winds down.

“Nonetheless, one of many questions shall be whether or not prices associated to pandemic preparedness for the long run want to stay,” he instructed CTVNews. “So I feel that shall be one thing to look at.”

Diverty stated whereas Canada has by no means actually skilled declines in well being spending, the annual price of spending has declined earlier than.

“However general the numbers all the time tick up,” he stated. “So is that this a brand new degree from which we’ll bounce off? I feel that’s what we’ll have to look at sooner or later.”

Diverty stated the report’s information for 2020 and 2021 are the deliberate expenditures of governments and well being methods in Canada.

“As these wash by the system, then we’ll replace the report with the precise expenditures that happened,” he defined.


Greater than half of Canada’s well being spending is predicted to proceed in the direction of hospitals, medication and doctor providers, the report discovered.

Hospitals are anticipated to account for 25.1 per cent of Canada’s complete well being expenditure, whereas medication and physicians account for 13.9 per cent and 13.5 per cent of the spending, respectively.

In line with CIHI, a brand new spending class known as “COVID-19 response funding” accounts for seven per cent ($23 billion) of Canada’s complete well being spending. This class covers issues resembling COVID-19 remedies, contact tracing and vaccinations.


In line with CIHI, the sum of money spent on well being varies throughout Canada’s provinces and territories.

Per individual well being spending is predicted to be highest in Canada’s territories, with $14,111 being spent in Yukon, $23,023 in Nunavut and $20,365 within the Northwest Territories.

Right here’s how a lot every of the provinces is forecasted to spend per individual in 2021:

British Columbia: $7,946

Alberta: $8,230

Saskatchewan: $8,502

Manitoba: $8,313

Ontario: $7,773

Quebec: $7,931

Newfoundland and Labrador: $9,585

New Brunswick: $7,969

Nova Scotia: $8,831

Prince Edward Island: $8,136


About 75 per cent of the nation’s complete well being expenditures are anticipated to be paid for by the general public sector, the CIHI report says.

In line with CIHI, 65.6 per cent of that can come from provincial and territorial governments, whereas the remaining 9.1 per cent shall be paid for by different elements of the general public sector.

Twenty-five per cent of the nation’s well being spending is roofed by the personal sector.

Out-of-pocket spending accounts for 12.1 per cent of the expenditure, whereas personal medical health insurance (10.6 per cent), and non-consumption (2.6 per cent) account for the rest.

This marks a major change from the 70 to 30 per cent cut up between the private and non-private sector, respectively, that Canada had skilled pretty steadily from the early 2000s till 2019.

In line with Diverty, the shift occurred as a result of pandemic-related expenditures which have been funded by public {dollars}. Nonetheless, he stated it will probably shift again because the pandemic winds down.

“We’d count on that that can transfer again in the direction of 70-30,” Diverty defined. “I’m unsure the speed of it, however it actually is dependent upon whether or not these COVID particular expenditures proceed and for the way lengthy they proceed to be wanted and the place they’re utilized.”


Included within the CIHI report is a comparability of Canada’s well being spending in opposition to 38 different nations who’re members of the Organisation for Financial Co-operation and Growth (OECD).

In line with the newest information obtainable, Canada ranked among the many highest spenders in 2019, spending $6,666 per individual on well being care, with the expenditure accounting for 10.8 per cent of the nation’s GDP.

Diverty stated Canada’s place amongst OECD members in 2019 is “the place we are typically.”

“We spend greater than the common of our OECD colleague nations, and we are inclined to cluster with a gaggle of nations that features a lot of European nations, with the U.S. a lot greater,” he defined.

In 2019, the common OECD expenditure was $5,074 per individual, and accounted for 8.8 per cent of the GDP.

Whereas Diverty stated it’s too quickly to know whether or not Canada’s place among the many OECD nations will change for 2020 or 2021, he stated the following few years shall be “very fascinating.”

“As a result of then we will convey the COVID-19-related expenditures into the equation and see how we fared on these,” he stated.

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