Ontario Health Sector

Transcription

1 Ontari Health Sectr An Updated Assessment f Ontari Health Spending Technical Briefing

2 Backgrund Since 2012, health spending restraint has been a key measure t balance the budget. The 2017 Ontari Budget annunced $6.9 billin in additinal health sectr funding which relieved sme f the spending restraint. This reprt prvides an updated assessment f the Prvince s health sectr expense plan in rder t supprt Members f Prvincial Parliament in evaluating health sectr spending in the upcming 2018 Ontari Budget. Financial Accuntability Office f Ontari fa-n.rg March 14,

3 Reprt Outline This reprt: 1. Examines the new health spending annunced in the 2017 budget. 2. Assesses the extent t which the new funding eases budget pressure in Ontari s health sectr. 3. Analyzes federal supprt fr Ontari health spending. Financial Accuntability Office f Ontari fa-n.rg February 12,

4 1. New Health Spending in the 2017 Budget

5 Allcatin f the 2017 Budget s New Health Spending $6.9 billin in new spending annunced in the 2017 budget. $1.2 billin is a pensin accunting adjustment and des nt invlve any additinal cash spending. $5.7 billin is an increase in spending n health care services. $4.2 billin in additinal funding fr existing prgrams. $1.5 billin in funding fr new prgrams (mainly OHIP+). Mst f the new spending is allcated t and Financial Accuntability Office f Ontari fa-n.rg March 14,

6 Allcatin f the 2017 Budget s New Health Spending by Prgram Area Mst f the additinal funding is ging t hspitals, OHIP, Ontari Drug Prgrams, and ther prgrams. Financial Accuntability Office f Ontari fa-n.rg March 14,

7 2. Health Spending and Budget Pressure in Ontari s Health Sectr

8 Ttal health care spending has nt kept pace with the funding pressure frm inflatin and Ontari s grwing and aging ppulatin. Nte: ppulatin grwth, ppulatin aging and price inflatin are three cre drivers f health care csts. Financial Accuntability Office f Ontari fa-n.rg March 14,

9 Planned spending grwth fr existing health services is well belw the expected grwth f cre cst drivers ver the utlk. Nte: ppulatin grwth, ppulatin aging and price inflatin are three cre drivers f health care csts. Financial Accuntability Office f Ontari fa-n.rg March 14,

10 Hw can the Prvince grw health spending mre slwly than its cre cst drivers? T grw health spending belw the grwth f cre cst drivers the Prvince can: Imprve efficiency. Temprarily cut spending. Ratin care, eliminate services r allw the quality f existing services t deterirate. Since 2012, the Prvince has relied n a number f strategies, including: Fur-year freeze n hspital base perating funding. Increases in hspital efficiency. Restraining wage grwth f health care wrkers, including dctrs. Financial Accuntability Office f Ontari fa-n.rg March 14,

11 Health care services: access and quality With s many indicatrs f health care quality, it is difficult t identify key trends and t link these trends t recent health sectr expense restraint. Fr example, the FAO s review f wait time data shws a mix f system imprvements and deteriratins. Ging frward, unless the Prvince can cntinue t find significant efficiencies in the health sectr, there is a risk that additinal spending will be required t avid reductins in health care access r quality in the cming years. Financial Accuntability Office f Ontari fa-n.rg March 14,

12 3. Federal supprt fr Ontari health spending

13 Federal Supprt fr Ontari Health Spending The federal gvernment s Canada Health Transfer has been funding an increasing share f Ontari s health sectr spending. Even with the CHT funding frmula change, this trend is expected t cntinue under the gvernment s current spending plans. Hwever, ver the lng-term, CHT grwth will nt keep pace with the grwth f health care cst drivers. Financial Accuntability Office f Ontari fa-n.rg March 14,

14 Thank yu 2 Blr Street West Suite 900 Trnt, Ontari M4W 3E fa-n.rg inf@fa-n.rg