There’s a threat that’s headed towards Ontario’s healthcare system. As a structure that’s government funded, it’s entwined with the Canadian image. One for all, all for one. However, this structure is struggling to keep its head above water. With all the cutbacks and reforms that the system has undergone, it really is no surprise that citizens question the longevity of this arrangement. Perhaps in the near future Canada will no longer have a universal healthcare system, but one that resembles the structure in the United States. With the whirlwind of change, many today look for the causes that threaten the beloved healthcare system. In society today, it seems that the raging threat of the silver tsunami loaming ahead, is what’s taking the blame.
The
largest population in Canadian history is currently moving their way into old age. The baby boomers, and with this transition comes many stereotypes. There are many beliefs that this population is what is driving up the cost of healthcare. Beliefs that this population will create higher medical bills, access more care, require more medication, overall these individuals are believed to need more visits to the doctor, the emergency room more often due to their age. Since, the healthcare system is
governmentally funded these individuals are essentially dipping into the already scarce resources that society has. However, this misconception cannot be further from the truth.
With the allegations made towards this group of individuals, many scientists have taken it upon themselves into looking at what may be driving these costs. Although there is more care that is required as one ages its really not that simple. The
Canadian Institute for Health Information acquired some data in 2008 and organized it in a visually friendly display of various graphs
[1]. Beyond their simplicity, there are some very important findings.
One such finding was that the aging population in Ontario really isn’t the one driving the prices. Instead, its inflation. Within the data it was found that population aging contributed 0.8% yearly, and in total only accounted for 10.8% of the overall increase to healthcare costs. General inflation however contributed about 2.8%, accounting for approximately 38% of the overall increase. So where’s the inflation going? Well it seems that a large bulk of it is to paychecks. Within the data it was found that earnings themselves, had increased more than the economy average. So it doesn’t look as if the older generation itself is the root cause of the rising prices of Ontario’s healthcare system after all.
A more recent study in 2014 found that the three highest drivers were hospitals, drug uses and physicians
[2]. While expenses that the hospital experiences include technology, bed costs and wages. Hospital costs themselves account for 28.3% of the provincial total healthcare spending. Physicians make up their own category, this displays that between the 6-year period physician’s wages have continued to increase. Between the three highest drivers, in the year 2014, physicians made up the second highest driver in Ontario, contributing to 16.8% of the
total healthcare costs. While drugs came as a close third at 16.7%.
These drivers show that it really isn’t the older population at all. Instead its general inflation that is increasing certain expenses of healthcare. So how should Ontario manage these rising costs? Perhaps its time to look into drug companies and how much they’re charging, or maybe its time to tackle the cost of living. There are many different solutions that maybe possible as these expenses aren’t just specific to one age group. Instead these expenses are found in all age groups and categories and as such all need to be considered to amend this problem.
