Canada is expected to hit $331 billion in health spending in 2022, according to new estimates, but the steep increase in health spending caused by the pandemic seems to sliding back down — despite COVID-19 hospitalization rates exceeding those of 2021.
Canada is expected to hit $331 billion in health spending in 2022, according to new estimates, but the steep increase in spending caused by the pandemic seems to be sliding down — despite COVID-19 hospitalization rates exceeding those of 2021.
Before the pandemic, health spending was increasing steadily by around four per cent per year from 2015 to 2019. This growth rate jumped up to a 13 per cent increase in funding in 2020, largely attributed to the pandemic, followed by another seven per cent increase in health spending in 2021. Health spending normally grows alongside the economy, sometimes outstripping it. COVID-19 spurred an unprecedented increase in health spending in 2020.
Hospitals, physicians and drugs are the largest categories of spending, representing more than 50 per cent of total health spending in 2022. CIHI also looked at who is paying for the services Canadians are receiving. The public sector is projected to account for 72 per cent of total health expenditures in 2022, with the private sector accounting for 28 per cent.From 2000-2019, the public vs. private split has remained fairly steady at 70 per cent public, 30 per cent private.
But pandemic-related spending was slashed in half for 2022, with governments only spending around $14.5 billion.
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