Value for Money: An Evaluation of Health Spending in Canada

Ariste, R. and L. Di Matteo. Value for Money: An Evaluation of Health Spending in Canada. International Journal of Health Economics and Management. DOI 10.1007/s10754-016-9204-6 (Forthcoming)

Posted: 30 Dec 2016

See all articles by Ruolz Ariste

Ruolz Ariste

Université Laval; Université du Quebec en Outaouais (UQO)

Livio Di Matteo

Lakehead University

Date Written: December 3, 2016

Abstract

The long-term increase in international health spending sparked concerns about sustainability of health care systems but also the impact of such spending and the value for money from health spending. The period since 1975 has witnessed an increase in per capita health spending in Canada along with improvements in health outcomes. This paper is an economic evaluation of health spending in Canada – an analysis of the cost-effectiveness of aggregate health spending. Estimates of the cost per quality-adjusted life-year (QALY) are made for the whole 1980-2012 period and for four sub-periods of time – 1980-1989; 1989-1998; 1998-2007 and 2007-2012. This is done for both the general population as well as Canadian seniors. Under a medium contribution of health spending to life expectancy scenario for the 1980 to 2012 period, the costs per QALY gained averaged $16,977 and $14,968, respectively for the general population and the seniors. This suggests that the Canadian health system produces relatively good value for money, especially for the seniors. After applying separate adjustments to match total health spending in the US and NHS health spending in the UK, we found that costs per QALY gained in Canada were generally lower than those found for the US, but not for the UK.

Keywords: Evaluation, Health Spending, Outcomes, Canada

JEL Classification: H51, I10, I19

Suggested Citation

Ariste, Ruolz and Di Matteo, Livio, Value for Money: An Evaluation of Health Spending in Canada (December 3, 2016). Ariste, R. and L. Di Matteo. Value for Money: An Evaluation of Health Spending in Canada. International Journal of Health Economics and Management. DOI 10.1007/s10754-016-9204-6 (Forthcoming). Available at SSRN: https://ssrn.com/abstract=2891658

Ruolz Ariste (Contact Author)

Université Laval

2214 Pavillon J-A. DeSeve
Quebec, Quebec G1K 7P4
Canada

Université du Quebec en Outaouais (UQO) ( email )

Case postale 1250
succursale Hull
Gatineau, Québec J8X 3X7
Canada

Livio Di Matteo

Lakehead University ( email )

955 Oliver Road
Thunder Bay, Ontario P7B 5E1
Canada

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