Prescription drugs account for a small proportion of provincial health spending growth

Spending on prescription drugs attracts considerable media and political attention, yet in 2001 spending on drugs accounted for only 8 % of provincial health care spending. Spending on hospitals and other institutions and on physicians and other health professionals accounted for a combined total of 74% of provincial health spending.

The use of new medicines often replaces other more costly services and contributes to the continuing decline in rates of hospitalization in all provinces. But, despite the increased role of prescription drugs in provincial health systems, institutional care and spending on health professional services continue to account for an overwhelming proportion of provincial health spending growth.