Healthcare funding policy in Canada

Canada’ healthcare system is one of the fewest systems in the world that is funded by the public. It is highly rated and countries from all over the world want to adopt it. 70% of the healthcare system management is done by the public sector and the remaining 30% is done by the private healthcare systems. About 11% of the total GDP of Canada is spent on the healthcare system. An average Canadian is of view that with such a huge spending it is highly recommended to further regularize the system. The hospitals get 29.5% of the total health care amount, the drugs and prescription medicines get about 16% and the physicians get about 15.3% of the total healthcare budget. The spending on the healthcare is increased every year. The federal government is of the view that all Canadians should get fair and cost-effective treatment. Healthcare budget varies all across Canada and it is important to note that the provinces spent about 38% of their total budget on health care. Average per capita spending on health care in Canada is about $6,300. The highest health care spending in 2017 was in the Canadian province of Newfoundland and Labrador which was $7,266.

Healthcare funding basics

The global budget is the most important factor according to which the healthcare budget is distributed. A fixed amount of funding is distributed to the Canadian hospitals and healthcare-related institutes and they provide services to the patients over the course of time which is fixed by the government. This is usually one year and once the period is over the new funding is provided to the hospital. The predictability is the main advantage of the global budgets. They allow the hospital administrations and the governing bodies to decide what they require in the coming year. The issue of oversupply and the unnecessary care is also solved by this kind of funding. The cost of the institutions is also controlled in a highly decisive manner which leads to future cost-cutting initiatives.

Issues in healthcare

There are some issues with the healthcare funding model. As per some experts, this funding model is not correct at all. There are many hospitals which want to remain on budget and therefore they cut some services or become very selective. It is very important to note that the hospitals also cut financial incentives to the patients which tend to stay long. It is a process which is known as cream skimming and this problem has always been criticized by the Canadian healthcare experts. The hospitals in this regard make sure that the low-cost patients are treated. It also leads to hospital penalization.

Activity-based funding

It is important to note that the activity-based funding makes sure that the services based on patients are provided. To change the hospitals it is important that reports are extracted which can change the way hospitals take care of the patients. The system is not integrated with the other important systems which are another problem. The goal of the healthcare system cannot be achieved if this problem is not resolved.

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Key features of Canadian healthcare system

The provincial and the territorial services of Canada make sure that the healthcare system features are delivered to the common Canadians all over the country. The Canada Healthcare Act of 1984 governs the use of the ways which can be used to deliver the services to a common Canadian. The quality standards which are developed by the Canadian government are also periodically applied to make sure that the health care system is working up to the mark. Both internal and external auditors are called to make sure that the cash inflow and outflow are checked. The administrative capabilities of the Canadian Healthcare system are the ones which make this system very cost effective for common Canadians. The Canadian healthcare system also is known as Medicare is one of the best healthcare systems in the world. Competitive practices are kept to the minimum and the overall management of the system is done in a manner that is followed by other nations. Cost cutting is also done in a manner that the basic healthcare systems are never hampered.

Government responsibility

It is the Federal Government which makes sure that the budget is allocated to the provinces and they get their respective people all the services which are required. There are 13 Medicare insurance plans which are currently working and this makes sure that the all the Canadian territories are covered. The federal government is responsible to apply and implement the standards which are defined by the Canadian healthcare act. The funding support is also provided to the provinces and specific groups such as minorities are also targeted. Healthcare delivery to such groups is also considered to be a part of federal government policies.

Canada Health Act

It is also an important feature of the healthcare in Canada. It allows the users to overcome the problems which a common Canadian can face in this regard. It also specifies the actions and the participation of both federal and provincial governments while delivering the healthcare in Canada. The insurance plans which are devised by the provincial and the federal government must meet the needs of the Canada Health act before it is offered and implemented. The most important standards which are included in the act are public administration, comprehensiveness, portability, and accessibility. It also allows the Canadians to let the concern authorities know of any problem in this regard.

Miscellaneous services

It is very important to know that there are some provisions of the system which are not mentioned in the Health Care Act of Canada. It means that the provincial and the territorial committees decide that should happen in this regard. The medically insured services which are included in the provisions of the provincial governments include the insurance of the basic medical services. It includes the hospitals, physicians, and dentists. There are some services which are considered to be very important when it comes to healthcare and these services are known as medically necessary. In case a person needs medically necessary service then the full cost of it is covered by the government. Such services are also not identified by Canadian Health Care Act.

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