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Related Experiment Videos

Cost containment mechanisms in Canada.

B J Davies1

  • 1Health Insurance Division, Health Canada, Postal locator: 0908C1, Ottawa, Canada. bruce_davis@hc-sc.gc.ca

Croatian Medical Journal
|May 11, 1999
PubMed
Summary

Canada

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Area of Science:

  • Health economics
  • Public health policy
  • Healthcare management

Background:

  • Controlling healthcare costs is a significant challenge for governments and insurers.
  • Understanding existing cost-control mechanisms is crucial for effective policy development.

Purpose of the Study:

  • To describe current mechanisms used by Canadian governments, medical associations, and private insurers to control healthcare costs.
  • To analyze the effectiveness and implications of these cost-control strategies.

Main Methods:

  • A descriptive research method was employed.
  • Comparative analysis of health spending (percentage of GDP) and population health status with other OECD countries.
  • Discussion of the importance, challenges, and requirements for healthcare cost control.

Main Results:

  • System-wide controls include single-payer financing, universal coverage, global budgets, preventive services, evidence-based systems, and regionalization.
  • Sector-specific controls target physicians, hospitals, drugs, and technology.
  • Cost containment in healthcare enables investment in other health determinants like employment.

Conclusions:

  • Canada's success in cost containment is attributed to its publicly financed, single-payer health insurance system.
  • This system facilitates cost control and universal access based on need, not ability to pay.
  • Future policies must curb private sector cost shifting and adopt a determinants of health approach.

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