National Health Expenditure Trends, 1975 to 2014 Briefing Deck October 2014

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This presentation Key findings Looking forward 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

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

Modest growth since 2011

What is the money being spent on? About 60% of total health expenditure in 2014 will be directed to hospitals, drugs and physicians

Population aging a modest cost driver Notes f: Forecast. AAG: Average annual growth. Sources National Health Expenditure Database, CIHI; Statistics Canada.

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

Health spending continues to vary across Canada

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%)

How does Canada compare internationally?

Issues to monitor in the future Looking forward Issues to monitor in the future

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

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 nhex@cihi.ca.