41st Annual Premiers’ Conference
NEWS RELEASE – UNDERSTANDING CANADA’S HEALTH CARE COSTS
WINNIPEG, AUGUST 10, 2000 --Premier Gary Doer of Manitoba, host of the first Annual Premiers' Conference of the new millennium, extended a warm Manitoba welcome to his fellow provincial and territorial premiers. This meeting represents the 41st anniversary of the Annual Premiers' Conference.
UNDERSTANDING CANADA'S HEALTH CARE COSTS
Today, Premiers released the final report on the sustainability of the health care system, Understanding Canada's Health Care Costs,.
Premiers agreed that this document provides background for informing their ongoing discussions on sustaining and renewing health care in Canada. Prepared by provincial/territorial Health Ministers, the report shows that while Canadians continue to be well-served by their health systems, the cost pressures on health systems are real and growing. Every province and territory faces a growing demand for health care services fuelled by changing demographics, new services and technologies, and the cost of renewal.
Key highlights from the report include:
- Overall provincial/territorial health expenditures have gone up substantially over the past two decades - from about $11 billion in 1977/78 to almost $56 billion in 1999/2000.
- Federal contributions for health care and other social programs as a share of provincial-territorial spending have decreased significantly from about 27 per cent in 1977/78 to about 13 per cent in 1999/2000.
- Cost drivers such as Canada's growing and ageing population and inflation are projected to increase provincial/territorial health expenditures from $56 billion to $85 billion in 10 years.
- This cost increase is likely an underestimate, as it does not take into account cost accelerators such as emerging and new technologies, the increased incidence of chronic and new diseases, and the cost of renewal. This could bring total provincial/territorial health spending to over $100 billion within the next decade.
- The federal government must fully and immediately restore the cash funding it cut from the CHST and implement an appropriate escalator to support the financial sustainability of the health system.
The report also shows that provinces and territories are leading health renewal efforts and have regularly increased their spending to ensure that Canadians continue to have high quality health care systems. Renewal efforts include improvements in the delivery and management of hospital care, access to physician services and primary care, rapid expansion in home care and other community services, investment in long-term care and access to new drugs and technologies.
Premiers are united in calling on the federal government to once again join them as partners in sharing the costs of health care and other social programs by fully and immediately restoring the cash it cut from the CHST and implementing an appropriate escalator. Premiers know that Canadians expect the federal government to renew its commitment to adequately fund social programs and to work with provinces and territories to ensure these programs are there for them in the years ahead.