Transcript National Health Expenditures Executive Briefing

National Health Expenditure Trends,
1975 to 2014
Briefing Deck
October 2014
Our Vision
Better data. Better decisions. Healthier Canadians.
Our Mandate
To lead the development and maintenance of
comprehensive and integrated health information
that enables sound policy and effective health system
management that improve health and health care.
Our Values
Respect, Integrity, Collaboration, Excellence, Innovation
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This presentation
• Key findings
– How much is being spent on health care?
– What is the money being spent on?
– How does Canada compare internationally?
• Looking forward
– Issues to monitor in the future
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Key messages: 2014
• Continued modest growth trend since 2011
– Total health expenditure expected to grow by 2.1%, reaching
$215 billion in 2014, or $6,045 per person
– Rate of growth in health less than inflation and population
growth combined
• Slower growth in hospitals, drugs and physicians
– Hospital spending will grow by 2.1% in 2014, lowest growth rate
since the late 1990s
– Drug spending is projected to increase by 0.8% in 2014
– Physician spending is forecast to grow by 4.5% in 2014; the growth on
physician spending has outpaced that on hospitals and drugs since 2007
• Population aging a modest cost driver, estimated at 0.9% per year
• Health spending varies among provinces
• Canada remains among the top spenders in the OECD
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Modest growth since 2011
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What is the money being spent on?
• About 60% of total health expenditure in 2014 will be
directed to hospitals, drugs and physicians
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Population aging a modest cost driver
8%
AAG for Public-Sector Spending
Total: 7.0%
6%
2.7%
Total: 3.3%
4%
0.9%
0.9%
1.1%
1.0%
2%
Total: 2.4%
0.9%
1.2%
Total: 2.0%
0.9%
1.1%
2.5%
2.4%
1.3%
1.7%
0%
-1.2%
-1.0%
2010–2012 AAG
2013f
-2%
2000–2010 AAG
General Inflation
Notes
f: Forecast.
AAG: Average annual growth.
Sources
National Health Expenditure Database, CIHI; Statistics Canada.
Population Growth
Aging
-1.7%
2014f
Other
© Canadian Institute for Health Information.
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Aging is only a relatively modest contributor to
overall growth in health spending
• Less than 1% per year
• Varies across the country
– More significant in the Atlantic provinces and Quebec
– Smaller impact in Ontario and the West
– Future challenges of providing care for
• Frail elderly persons, as the percentage of the population
age 80 and older increases
• Seniors with multiple chronic conditions
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Health spending continues to vary across Canada
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International comparisons: Fast facts
• Canada is among the top spenders in the OECD
– Among top 10 in terms of ratio of health spending to GDP
– United States is highest spender overall
• Since 2008, the ratio of health spending to GDP has
stabilized or fallen in most OECD countries
– Canada’s experience similar to that of other OECD
countries where the ratio has fallen
• The share of health spending publicly financed in
Canada (70%) is lower than the OECD average (73%)
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How does Canada compare internationally?
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Looking forward
Issues to monitor in the future
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Keeping an eye on
• Moderating effects of economic growth and
government deficits
• Change in Canada Health Transfer formula
• Growth in number of physicians and
physician compensation
• Population aging and potential impact on spending
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More information
The annual report National Health Expenditure Trends,
1975 to 2014 provides detailed, updated information on
health expenditure in Canada.
The annual report, information sheets, presentations,
methodological notes and up-to-date data tables are
available at www.cihi.ca/nhex.
Feedback and questions can be sent to [email protected].
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