Health-care spending in Canada to hit $183 billion

OTTAWA — Canadian health-care spending is expected to reach $183.1 billion in 2009 or $5,452 per Canadian, according to figures released Thursday by the Canadian Institute for Health Information.

The estimate represents a $9.5 billion increase from 2008, when health-care spending was estimated to be $172 billion.

As a proportion of the gross domestic product, health expenditures represent 11.9 per cent, an all-time high, says the CIHI report. In 2008, it was 10.8 per cent.

The jump in health-care spending as a proportion of the GDP can be attributed to a slowdown in the economy, said CIHI CEO Anne McFarlane.

"The reason for that increase is not particularly because of the growth in health-care expenditure . . . but because of the decline in the size of the economy because of the recession," she said.

"If everything had remained constant, if the recession hadn't happened, we would have projected that the GDP ratio for 2009 would be basically what is was for 2008."

Hospitals are expected to account for the largest proportion of health-care spending in Canada this year, at 27.8 per cent, or $51 billion.

Spending on drugs is expected to make up the second largest proportion of health spending.

CIHI is an independent body that collects and analyzes data on health-care spending, services and population health.