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The Canadian Health Care System

      Matthew Goldsworthy

      December 15th, 2009
2




                           The Canadian Health Care System

Introduction

The health care system in Canada is based on nation-wide coverage for the whole

population health care services which are provided on the basis of need. It is unlike

many other countries in which health services are available to their citizens only if they

pay the price. One example of this is in the United States where health care is purchased

as needed. In contrast, Canadians all pay into the health care system for the good of all

whether they use the system or not. "Medicare" is the name of the Canadian health

insurance plan and it is provided seamlessly across Canada. These insurance plans

include coverage in all of the ten provinces and three territories. Canadian government

ensures that any necessary health services are granted to those in need anywhere in

Canada. Health Canada's top goal is to help Canadians stay as healthy as possible.

Health Canada is required to deliver health care to specific groups as well such as the

Native People, Inuit. Furthermore, Health Canada's responsibilities include creating and

controlling numerous principles that the health care system will be guided by at all times.

       Health Canada administers this through the "Canadian Health Act" (CHA). The

Canadian Health Act is the federal legislation for publicly funded health care insurance.

This insurance is covered by taxations that all citizens have to pay annually. It is a small

price to pay to gain access of coverage anywhere in Canada, for any medically necessary

health service. The Canadian Health Act's primary goal is to "protect, promote and

restore the physical and mental well-being of residents of Canada and to facilitate

reasonable access to health services without financial or other barriers."1 Canada does not
3


want any barriers between tax paying citizens of Canada, and the necessary

health services they require. The main obstacle people tend to encounter is the large fees

involved in medical necessities and treatment. The Canadian Health Act is guaranteeing

reasonable access to insured health services without paying. This includes no direct

charges at the point of service.

       Each Province and Territory has interlocking insurance plans, but they each have

to abide by the criteria and conditions given by the Canadian Health Act. If each

Province and Territory adheres to these conditions and criteria, it will qualify them for

their full share of the federal cash contribution which has to be used to continue

maintaining the national health criteria. Although the Federal government provides

money, each Province and Territory has to manage, organize, and ensure their residents

have the health services required. The Canadian Health Transfer (CHT) is allocated on an

equal amount of money per capita basis. This ensures the right amount of money is

distributed across the country. The (CHT) is the main financial component of the

Canadian Health Care System. 2

       There are five main guiding principles of health care in Canada. These

principles ensure Canadians are provided with non-profit based public

administration, universality and portability across Canada, and excellent accessibility

to necessary health services anywhere in Canada. The Canadian Health Care System is

publically run and administered by the Federal government. The intent of the Canadian

government is to maintain a non-profit basis for their health care system. It is also to

ensure that it is run by a public authority, with all records and accounts publicly audited.

The non-profit basis is an extremely beneficial point of the health care system. Canadian
4


citizens don't have to go to private doctors and pay inflated costs for their medical needs.

Public administration ensures that the citizens have the upper hand and are in control of

their own medical payments through taxation.

       Every Province and Territory are required to have comprehensiveness regarding

the medical necessity of health services, and ensure that all residents of a Province or

Territory are universally entitled to insured health care services. It is generally required

to register for health insurance and acquire a Canadian "Health Card" to be entitled to

insured health services. The Health Card's in Canada are what give you access to the

health services. The Health Card also ensures that you do not have to pay any money

directly at the point of service. Universality of health care is greatly beneficial because it

eliminates any location barriers regarding insurance plans. Everywhere in Canada

citizens are entitled to health care insurance. Universality and Comprehensiveness

are two crucial principles of the Canadian Health Care System.

       The insured health services are transferable all across Canada between Provinces

and Territories due to the portability principle of Canadian Health Care. Canadian

citizens are allowed to go to other Provinces and Territories temporarily and still have

insured health services. Insurance plans are organized on a Provincial and Territorial

basis. This does not make your insured health services permanent in different Provinces

and Territories where you do not reside. If a Canadian citizen is in a different Province

or Territory for a temporary visit then they still get full coverage for any medical

necessities or treatment. The portability of health insurance in Canada makes it easier

and more beneficial to Canadian citizens if they need health services when they
5


are located in a different part of the country. Portability is an important principal to the

Canadian health care system.

       Accessibility is an important principle of the Canadian Health Care System. It is

beneficial for the insured Canadian citizens because it guarantees that they will have

reasonable accessibility to medically necessary health services regardless of their

location. People do not have to worry about being far away from hospitals because it is

Health Canada's intent to make health services everywhere in Canada available.

Provinces and Territories must provide compensation to physicians and dentists for all

insured health services they provide people with. Also, provinces and territories must

pay hospitals to cover costs of insured health services as well. The accessibility of

Canadian health services is another principle point of the health care system and it

benefits all Canadian citizens.

       "The principles of the Canada Health Act began as simple conditions attached to

       federal funding for Medicare. Over time, they became much more than that.

        Today, they represent both the values of underlying the health care system and

       the conditions that governments attach to funding a national system of public

       health care. The principles have stood the test of time and continue to reflect the

       values of Canadians." (Romanow, Roy J., Q.C. November, 2002)

The goal of the Canadian Health Care System is to adhere to five principles that affect the

entire country. These principles ensure that the Health Care System is universal,

accessible to citizens, portable between provinces and territories, comprehensive of

medically necessary care, and has public administration. Each of these principles are

declared in the Canada Health Act (CHA) and are meant to make sure the Canadian
6




Health Care System is as beneficial as possible, and that Canadians stay health and

improve their health.

       In Canada the demand for more nurses is increasing every year by astronomical

amounts. This nursing shortage is worsening at an alarming rate and Canada will

be short a projected 60,000 nurses by 2022. If this projection is accurate, there will be

many negative outcomes for patients, nurses and for hospitals. Nurses to patient ratios

due to the fact there are not enough nurses to care for patients and to compound the issue,

Canada’s population is aging and is requiring greater amounts of health care services.

The working conditions for nurses will deteriorate and more nurses will leave the

profession which makes the nursing shortage even worse. The stress levels and harsh

work environments will lead to more nurses retiring at a younger age which in turn

will lead to more hospital beds being closed due to lack of staffing. With less hospital

beds and nurses to care for patients, wait times for surgeries and procedures will become

even longer.

       Another current issue facing the Canadian Health Care System is the shortage of

Physicians and specifically family doctors. Currently in the Durham Region many new

families are searching for a family doctor they can depend on in times of medical need.

The amount of physicians in comparison to how many sick people there are, or how

many people who simply need a family doctor are extremely low. The number of

physicians is so low that in 2003, 1.2 million Canadians were unable to find a physician.3

The lack of physicians and nurses in Canada is greatly affecting the wait times for every

type of treatment at hospitals. These wait times include minor things like being
7


prescribed antibiotics to treatment for oncology patients. Wait times are even increasingly

longer with surgeries and procedures. Wait times are not only frustrating for Canadians

but they are making it unsafe for some people requiring urgent medical attention. The

nursing and physician shortage is making the working conditions unbearable, and could

jeopardize the health of Canadians. As a result of these shortages the wait times for

sometimes crucial procedures is increasing and causing patients in some cases to seek

healthcare elsewhere such as in the US ( where they have to pay for the services at the

point of care).

       There are many positive components of the Canadian Health Care System. They

include the highest quality health services and standards nation-wide. It is always a good

thing for patients when a country’s standards are high and the health services are even

higher, because you are getting the best help and services possible. Also, the amount of

insurance that the government provides is spectacular. The only cost to Canadian citizens

for medically necessary health services is the annual taxation that isn’t too substantial,

considering what you are receiving in return. In addition, everyone has equal

accessibility and is of equal importance to Canada’s Health Care System. One of the

most prominent principles of the Canadian Health Care System is the accessibility of

medically necessary health services all over the country. This is not only beneficial but

extremely safe for citizens who may need treatment.

       There are also several negative components to the Canadian Health Care System.

Canada has a shortage of nurses and physician which causes a situation in which there are

not enough health care providers to care for the population. This lack of health care

workers results in closing down of beds, long, frustrating wait times as well as
8


increasingly stressful working conditions for nurses and physicians. Wait times can also

be unsafe for any of the patients’ health. Furthermore, people may not prefer having to

pay their taxes to the government, especially if they rarely need health services. In

addition, if anyone requires any additional health options like: massages and chiropractic

services, they are not included in “Medicare” coverage. Therefore, this exclusion of

other option for health services diminishes the advantages of health insurance.

       Canada’s Health Care system has stood the test of time in providing accessible

health care to all Canadians. Our health care system although expensive to administer, is

envied by other countries. Currently in the US there is a vigorous debate over the

possibility of converting to a system such as Canada’s. Other countries such as the UK,

Netherlands and Australia have a similar health care system to Canada’s and find that it is

very beneficial to their citizens. Although the Canadian health care system has been

criticized for its wait times, the country has been diligently working on a ‘wait time

strategy’ to decrease wait times in emergency rooms, for procedures and surgeries. In

addition, Canada is working towards health human resources solutions to address the

nursing and physician shortages. For instance, in some communities that do not have

enough family physicians, nurse practitioner led clinics have been implemented. These

clinics allow patients to be assessed, treated and triaged as needed. As the population

continues to age and require greater levels of health care, the Canadian government will

need to evolve the health care system and become increasingly responsive to the

challenges it faces.
9




Endnotes
1
    “Canadian Health Care” <http://www.hc-sc.gc.ca/hcs-sss/index-eng.php> Ottawa, 2002
2
  “Canadian Health Transfer” <http://www.fin.gc.ca/fedprov/cht-eng.asp> Ottawa, Jan. 09
3
 “Canada’s Physician Shortage” <http://www.fraserinstitute.org/researchandpublications/publications/3147.aspx> Unkown,
Aug. 2006

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Chcs Edits Ver 4 Final

  • 1. 1 The Canadian Health Care System Matthew Goldsworthy December 15th, 2009
  • 2. 2 The Canadian Health Care System Introduction The health care system in Canada is based on nation-wide coverage for the whole population health care services which are provided on the basis of need. It is unlike many other countries in which health services are available to their citizens only if they pay the price. One example of this is in the United States where health care is purchased as needed. In contrast, Canadians all pay into the health care system for the good of all whether they use the system or not. "Medicare" is the name of the Canadian health insurance plan and it is provided seamlessly across Canada. These insurance plans include coverage in all of the ten provinces and three territories. Canadian government ensures that any necessary health services are granted to those in need anywhere in Canada. Health Canada's top goal is to help Canadians stay as healthy as possible. Health Canada is required to deliver health care to specific groups as well such as the Native People, Inuit. Furthermore, Health Canada's responsibilities include creating and controlling numerous principles that the health care system will be guided by at all times. Health Canada administers this through the "Canadian Health Act" (CHA). The Canadian Health Act is the federal legislation for publicly funded health care insurance. This insurance is covered by taxations that all citizens have to pay annually. It is a small price to pay to gain access of coverage anywhere in Canada, for any medically necessary health service. The Canadian Health Act's primary goal is to "protect, promote and restore the physical and mental well-being of residents of Canada and to facilitate reasonable access to health services without financial or other barriers."1 Canada does not
  • 3. 3 want any barriers between tax paying citizens of Canada, and the necessary health services they require. The main obstacle people tend to encounter is the large fees involved in medical necessities and treatment. The Canadian Health Act is guaranteeing reasonable access to insured health services without paying. This includes no direct charges at the point of service. Each Province and Territory has interlocking insurance plans, but they each have to abide by the criteria and conditions given by the Canadian Health Act. If each Province and Territory adheres to these conditions and criteria, it will qualify them for their full share of the federal cash contribution which has to be used to continue maintaining the national health criteria. Although the Federal government provides money, each Province and Territory has to manage, organize, and ensure their residents have the health services required. The Canadian Health Transfer (CHT) is allocated on an equal amount of money per capita basis. This ensures the right amount of money is distributed across the country. The (CHT) is the main financial component of the Canadian Health Care System. 2 There are five main guiding principles of health care in Canada. These principles ensure Canadians are provided with non-profit based public administration, universality and portability across Canada, and excellent accessibility to necessary health services anywhere in Canada. The Canadian Health Care System is publically run and administered by the Federal government. The intent of the Canadian government is to maintain a non-profit basis for their health care system. It is also to ensure that it is run by a public authority, with all records and accounts publicly audited. The non-profit basis is an extremely beneficial point of the health care system. Canadian
  • 4. 4 citizens don't have to go to private doctors and pay inflated costs for their medical needs. Public administration ensures that the citizens have the upper hand and are in control of their own medical payments through taxation. Every Province and Territory are required to have comprehensiveness regarding the medical necessity of health services, and ensure that all residents of a Province or Territory are universally entitled to insured health care services. It is generally required to register for health insurance and acquire a Canadian "Health Card" to be entitled to insured health services. The Health Card's in Canada are what give you access to the health services. The Health Card also ensures that you do not have to pay any money directly at the point of service. Universality of health care is greatly beneficial because it eliminates any location barriers regarding insurance plans. Everywhere in Canada citizens are entitled to health care insurance. Universality and Comprehensiveness are two crucial principles of the Canadian Health Care System. The insured health services are transferable all across Canada between Provinces and Territories due to the portability principle of Canadian Health Care. Canadian citizens are allowed to go to other Provinces and Territories temporarily and still have insured health services. Insurance plans are organized on a Provincial and Territorial basis. This does not make your insured health services permanent in different Provinces and Territories where you do not reside. If a Canadian citizen is in a different Province or Territory for a temporary visit then they still get full coverage for any medical necessities or treatment. The portability of health insurance in Canada makes it easier and more beneficial to Canadian citizens if they need health services when they
  • 5. 5 are located in a different part of the country. Portability is an important principal to the Canadian health care system. Accessibility is an important principle of the Canadian Health Care System. It is beneficial for the insured Canadian citizens because it guarantees that they will have reasonable accessibility to medically necessary health services regardless of their location. People do not have to worry about being far away from hospitals because it is Health Canada's intent to make health services everywhere in Canada available. Provinces and Territories must provide compensation to physicians and dentists for all insured health services they provide people with. Also, provinces and territories must pay hospitals to cover costs of insured health services as well. The accessibility of Canadian health services is another principle point of the health care system and it benefits all Canadian citizens. "The principles of the Canada Health Act began as simple conditions attached to federal funding for Medicare. Over time, they became much more than that. Today, they represent both the values of underlying the health care system and the conditions that governments attach to funding a national system of public health care. The principles have stood the test of time and continue to reflect the values of Canadians." (Romanow, Roy J., Q.C. November, 2002) The goal of the Canadian Health Care System is to adhere to five principles that affect the entire country. These principles ensure that the Health Care System is universal, accessible to citizens, portable between provinces and territories, comprehensive of medically necessary care, and has public administration. Each of these principles are declared in the Canada Health Act (CHA) and are meant to make sure the Canadian
  • 6. 6 Health Care System is as beneficial as possible, and that Canadians stay health and improve their health. In Canada the demand for more nurses is increasing every year by astronomical amounts. This nursing shortage is worsening at an alarming rate and Canada will be short a projected 60,000 nurses by 2022. If this projection is accurate, there will be many negative outcomes for patients, nurses and for hospitals. Nurses to patient ratios due to the fact there are not enough nurses to care for patients and to compound the issue, Canada’s population is aging and is requiring greater amounts of health care services. The working conditions for nurses will deteriorate and more nurses will leave the profession which makes the nursing shortage even worse. The stress levels and harsh work environments will lead to more nurses retiring at a younger age which in turn will lead to more hospital beds being closed due to lack of staffing. With less hospital beds and nurses to care for patients, wait times for surgeries and procedures will become even longer. Another current issue facing the Canadian Health Care System is the shortage of Physicians and specifically family doctors. Currently in the Durham Region many new families are searching for a family doctor they can depend on in times of medical need. The amount of physicians in comparison to how many sick people there are, or how many people who simply need a family doctor are extremely low. The number of physicians is so low that in 2003, 1.2 million Canadians were unable to find a physician.3 The lack of physicians and nurses in Canada is greatly affecting the wait times for every type of treatment at hospitals. These wait times include minor things like being
  • 7. 7 prescribed antibiotics to treatment for oncology patients. Wait times are even increasingly longer with surgeries and procedures. Wait times are not only frustrating for Canadians but they are making it unsafe for some people requiring urgent medical attention. The nursing and physician shortage is making the working conditions unbearable, and could jeopardize the health of Canadians. As a result of these shortages the wait times for sometimes crucial procedures is increasing and causing patients in some cases to seek healthcare elsewhere such as in the US ( where they have to pay for the services at the point of care). There are many positive components of the Canadian Health Care System. They include the highest quality health services and standards nation-wide. It is always a good thing for patients when a country’s standards are high and the health services are even higher, because you are getting the best help and services possible. Also, the amount of insurance that the government provides is spectacular. The only cost to Canadian citizens for medically necessary health services is the annual taxation that isn’t too substantial, considering what you are receiving in return. In addition, everyone has equal accessibility and is of equal importance to Canada’s Health Care System. One of the most prominent principles of the Canadian Health Care System is the accessibility of medically necessary health services all over the country. This is not only beneficial but extremely safe for citizens who may need treatment. There are also several negative components to the Canadian Health Care System. Canada has a shortage of nurses and physician which causes a situation in which there are not enough health care providers to care for the population. This lack of health care workers results in closing down of beds, long, frustrating wait times as well as
  • 8. 8 increasingly stressful working conditions for nurses and physicians. Wait times can also be unsafe for any of the patients’ health. Furthermore, people may not prefer having to pay their taxes to the government, especially if they rarely need health services. In addition, if anyone requires any additional health options like: massages and chiropractic services, they are not included in “Medicare” coverage. Therefore, this exclusion of other option for health services diminishes the advantages of health insurance. Canada’s Health Care system has stood the test of time in providing accessible health care to all Canadians. Our health care system although expensive to administer, is envied by other countries. Currently in the US there is a vigorous debate over the possibility of converting to a system such as Canada’s. Other countries such as the UK, Netherlands and Australia have a similar health care system to Canada’s and find that it is very beneficial to their citizens. Although the Canadian health care system has been criticized for its wait times, the country has been diligently working on a ‘wait time strategy’ to decrease wait times in emergency rooms, for procedures and surgeries. In addition, Canada is working towards health human resources solutions to address the nursing and physician shortages. For instance, in some communities that do not have enough family physicians, nurse practitioner led clinics have been implemented. These clinics allow patients to be assessed, treated and triaged as needed. As the population continues to age and require greater levels of health care, the Canadian government will need to evolve the health care system and become increasingly responsive to the challenges it faces.
  • 10. 1 “Canadian Health Care” <http://www.hc-sc.gc.ca/hcs-sss/index-eng.php> Ottawa, 2002 2 “Canadian Health Transfer” <http://www.fin.gc.ca/fedprov/cht-eng.asp> Ottawa, Jan. 09 3 “Canada’s Physician Shortage” <http://www.fraserinstitute.org/researchandpublications/publications/3147.aspx> Unkown, Aug. 2006