Despite misleading claims that drugs accounted for most of Canadian health care spending growth, institutional care continues to drive Canadian health spending

According to the Canadian Institute for Health Information (CIHI), total Canadian health spending will have increased by 7.7 percent in 2005 compared to 2004. The CIHI data reveals that total spending on health care during this period increased by $10.2 billion. Hospitals and other institutions accounted for $3.5 billion of the increase. Physician and other health professional services accounted for $2.2 billion of the increase. Spending on all drugs, including over the counter remedies and prescription and non prescription drugs accounted for $2.6 billion in health spending increases. As has been the trend for decades, spending in real dollars on institutional and health professional services continues to increase more than spending on prescription drugs.

If continued research and development fulfill the promise of medical discovery, more of Canada’s future health spending will be for products and devices that treat, prevent or cure illness and disease and improve the quality of life for all Canadians.