(PDF) Health And Health Economics: A Conceptual Framework
Added on 2021-06-16
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HEALTH SYSTEMS AND ECONOMICSTHE HEALTH CARE SYSTEM IN CANADAINTRODUCTIONThe health sector is the most crucial in a country’s economic development. Every country across the world depends largely on the well being of its people, the good health of its inhabitants for itsdevelopment. Hence, they end up investing so much in the health sector to secure a rise in the economy. Taking Canada as an example, there is a difference between the Canadian and the USA health care system, they include the following;BODYIn Canada, most health care systems are publicly funded while in the USA, they have a heavily private health system. In Canada, they have a universal health coverage while in USA, the universal health coverage is dependent on age (those above 65 years). In Canada, all citizens enjoy equal access to health care while in the USA, 1/5 of its population are uninsured. In Canada, they use a single payer system while in USA they use a hybrid system. Checking on the percentage of the GDP upon health, the world spent 10% of global GDP on health. According to {CIHI (Canadian Institute for Health Information), 2017}, the percentage ofGDP on heath is represented as 11.5% in Canada while in the USA 18%. OECD average (2015) showed 8.9% of the GDP was spent on heath. According to (CIHI, 2014), the percentage of GDPon health is represented as 10% in Canada and 16.5% in the USA, (CIHI, 2015), 10.4% in Canada and 17% in USA and (CIHI, 2016), 10.6% in Canada and 17.2% in the USA. Canada’s health spending as share of GDP and life expectancy (10.4%0) is higher than the OECD average (8.9%) in 2015[CITATION Can17 \l 1033 ].
The health care system financing in Canada, Health care in Canada gets its funds from the general incomes of the provincial, theterritorial and the federal governments. Most of the territorial funding for health care is got from general tax income. In addition, the allocation of funds for the planning of publicly funded health insurance is done by the health care networks. The total health expenditure upon health in 2017 reached 242 billion Canadian dollars ($CA), spending per capita 5,782 $CA. In 2016, expenditures for public health was 13,428.4 $CA for PH (Public Health) spending occupies 5.5% of total health spending[ CITATION Mos17 \l 1033 ].Health expenditure by use of funds, (CIHI, 2107), the expenditure of shares have changed over time for three big spending divisions, health specialists, hospitals and drugs. The percentageexpenditure is, hospitals 29.5, drugs 16 and health specialists 15.3. The remainder 39.2 of the health care expenditure is accounted for other institutions which was 10.6 of the total in the year 2014, while health specialists including the vision and dental accounted for 9.9. The main sources of finance for public health, 2014, was the provincial/territorial government 77%,followed by federal government 16%, and then the municipal government 4%, and social security funds 3%[CITATION Can17 \l 1033 ].In Canada, publicly financed health care covers 70% that is, provincial and territorial government 65%, other public sectors 5% (covers almost all services: physician, diagnostic and hospital services). The private health insurance covers 30%, that is, private insurance 12%, OOP 15%, Other 3% like vision specialists. Financing is different in terms of health care goods and services. Hospitals and health specialists are financed by the public sector as entailed in the Canada Health Care Act, while medical drugs are financed from private-sector sources. Countries that use and invest much in health care have better health outcome than countries that use less on the same. The infant mortality rate in 1000 live births, 2016 for Canada was 4.9%
while the USA had a 6.5% rate. Canada had an average life expectancy, 2016 of 82.2% while theUSA had a 79.3% rate. The underlying trends of Health spending in Canada, (CIHI, 2017) show that 23.8% was spent on hospitals with an average 1,871 $CA per person while 16.4% was spent on drugs with an average of 1086 $CA per person and 15.4% was spent on physicians with an average 1,014$CA per person[CITATION CIH17 \l 1033 ].Health spending in Canada, 2017, Hospitals, Drugs, and Physicians spending occupied 55.6% of the total health expenditures, $ 242 billion. Spending on hospitals is growing slowly than before, annual growth in hospital expenses dropped 2.5% in 2015-2016 compared to 6.4% in 2010-2011. As the number of people who once treated in hospital tend to be treated as outpatients /from inpatient to outpatients. Health spending by age group in Canada, 2015 showed that 51%of the health spending was between ages 1to 64 years, 46% was for the 65 yearsand above while the under 1 year occupied a 3%[CITATION CIH17 \l 1033 ].Building blocks of the health system (governance) - In Canada, governance, health facilities and services are highly decentralized for three reasons below: a) Provincial responsibility for the funding and delivery of health care facilities; b) Physicians being independent workers;c)The evolution of many institutions, from regional health authorities to privately owned hospitals.[ CITATION Mar13 \l 1033 ]. Building blocks in the Canadian health system is due to; shortage of health workers, long waiting time in health sector and lack of educated infrastructures is done by:inputting strong leadership skills, ensuring that there is a good informational management, employing educated healthcare workforce, ensuring a stable service delivery, improved medical products and technology and ensuring an enough healthcare financing[ CITATION Esm18 \l 1033 ].Health workforce is one of the key health resource indicators. Canada and the USA had the same
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