Health Care Spending In Canada

HEALTH CARE SPENDING AND SOCIAL SERVICE SPENDING IN CANADA

Introduction

Health care spending is a major issue in Canada. According to Smith, Mitton and Kershaw(2016)total public health expenditure in Canada has increased significantly. In terms of Gross Domestic Product(GDP)public health care expenditures increased from 6.4 percent in 1995 to 8 percent in 2010. This places Canada among the top spenders on health care among developed countries(p. e130). Figures like this make it clear that Canada spends a lot on health care.

Not only does Canada spend a lot on healthcare but, it does not achieve better results for this high level of spending. Smith, Mitton and Kershaw(2016)argue that compared to other developed country Canada has a

It will be argued that Canada should focus on improving the social determinants of health. This would mean that health care spending should be maintained or reduced and more spending should be focused on social services. Social services impact the social determinants of health and can produce significant improvements in health outcomes. It would allow for less to be spent on health care and produce better health

Dutton, Forest, Kneebone and Zwicker(2018)note that a 2009 Canadian Senate Report argues that health care system costs were only responsible for 25 percent of health outcomes. The socioeconomic environment played a much larger role in health outcomes(p. E66). This is important for three reasons. The first reason is because it makes it clear that health care spending was not the primary way of improving health care outcomes. The second reason is because it indicates that more attention needs to be paid to the social determinants of health. The third reason is because it highlights how increased health care spending is inefficient and ineffective. Health care in the form of the health care system is only responsible for about a quarter of health care outcomes. This means that only minor improvements in health outcomes will result from spending more on health care. However, spending more on the social services can have a massive effect on health outcomes. This would make spending on social services a viable option for improving health