New data from the Canadian Institute for Health Information (CIHI) forecasts that Canada will spend $331 billion on health care in 2022, which is $8,563 per Canadian.
Prior to the pandemic, growth in health spending averaged 4% per year. 2020 saw an unprecedented level of growth at 13%, driven by the pandemic. In 2021, the 7% growth rate still surpassed the average rate seen in previous years. The latest figures from CIHI show that growth in spending will slow in 2022 to 0.8%.
“Despite a levelling off in 2022, growth in health care spending in Canada continues to be driven by ongoing factors such as an aging population, population growth and use of health services,” said Ann Chapman, director of Spending and Primary Care at CIHI. “The strain on budgets because of the pandemic is putting pressure on health system recovery efforts.”
Continuing a long-standing trend, Hospitals, Physicians and Drugs remain the 3 highest categories of spending. Combined, they are expected to represent more than 50% of total health spending in Canada in 2022. Growth in hospital spending is expected to accelerate due to efforts to clear surgical and other backlogs. And with the return to more typical levels of physician activity, Physicians now accounts for the second-largest share of total health spending, up from the third-largest share in previous years. CIHI has also released new data on public drug spending that includes spending trends and information on the drugs that accounted for the highest costs in our health systems.
As the country continues to experience the pandemic, COVID-19 Response Funding is expected to make up more than 4% of total health spending in 2022, at $14.5 billion. This category accounted for $29.3 billion in 2020 and $32.5 billion in 2021.
About CIHI
The Canadian Institute for Health Information (CIHI) is an independent, not-for-profit organization dedicated to providing essential health information to all Canadians.
CIHI works closely with federal, provincial and territorial partners and stakeholders throughout Canada to gather, package and disseminate information to inform policy, management, care and research, leading to better and more equitable health outcomes for all Canadians.
Health information has become one of society’s most valuable public goods. For more than 25 years, CIHI has set the pace on data privacy, security, accessibility and innovation to improve Canada’s health systems.
CIHI: Better data. Better decisions. Healthier Canadians.
Media contacts
media@cihi.ca
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Stephanie Bright
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Claire Brassard