Canadian Institute for Health Information. (2011). Health Care Cost Drivers: The Facts. Ottawa, ON. Retrieved from https://secure.cihi.ca/estore/productFamily.htm?locale=en&pf=PFC1672.
“This study of health care cost drivers is a companion to CIHI’s annual report on
national health expenditure trends. With the expiry of the 2004 health accord
within the next three years, Canadians need a better understanding of the
underlying drivers of health care costs. This report presents a summary of CIHI’s
analysis of data and sheds light on the underlying factors that explain recent
trends in public-sector health spending.
It is first useful to put recent health spending growth into perspective by looking
at trends over a longer period of time. It should be noted that there have been
variations in the pace of health spending growth over the last 35 years. The growth
of public-sector health spending since 1975 can be divided into three phases: a
growth phase from 1976 to 1991; a short period of retrenchment and disinvestment
from 1992 to 1996, when governments dealt with fiscal deficits; and a growth
phase that averaged 3.5% per year, after adjusting for inflation, from 1997 until
2008, during which time health care became a top priority for Canadians. During
this latter period, major investments were made in health care, including spending
on physicians, drugs, hospitals and advanced diagnostics.
This study examines the growth in spending from 1998 to 2008 that is
attributable to underlying health care cost drivers, principally demographics
(population growth and aging), price inflation, technology and utilization.”