This document discusses global healthcare spending and issues with efficiency. It notes that healthcare costs are a large government expenditure and that many countries struggle with delivery issues. Specific examples call out the US having nearly $1 trillion in annual waste and inefficiency in its system. Canada is noted as needing to review rising drug costs that account for nearly half of its public healthcare spending. Other countries like the UK and Australia are highlighted as having more efficient systems through cost controls like drug caps and a focus on front-line services over administration.

1. Global Healthcare Crisis -
Funding
PAUL YOUNG CPA CGA
OCTOBER 23, 2019

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• SME – Business Strategy and Restructuring
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
 Global Healthcare spending
 Efficient Healthcare Countries
 OECD and Healthcare
 USA – Healthcare Waste
 Canada and Healthcare Waste
 Global Healthcare Delivery and Cost

4. Introduction
 Healthcare is key area for government as it
is large government expenditures
 Too many people do not grasp there are
issues with healthcare delivery

5. Global
Healthcare
Spending
SOURCE - DELOITTE

6. Efficient Healthcare Country Ranking
Source - http://worldpopulationreview.com/countries/best-healthcare-in-the-world/

7. OECD and
Healthcare
Funding
SOURCE – FRASER INSTITUTE

8. USA Waste and
Healthcare
Source - https://www.cfo.com/health-
benefits/2019/10/annual-waste-in-u-s-healthcare-
system-nears-1-
trillion/?utm_campaign=CFODailyAlert&utm_nooverri
de=1&utm_source=CFO-
email&utm_medium=email&utm_content=CFODailyAl
ert_Tuesday_2019-10-22&utm_term=health-benefits

9. Canada and Healthcare
Source - https://www.cihi.ca/en/canadas-drug-spending-growth-outpaces-that-for-hospitals-and-doctors or
https://www.cbc.ca/news/canada/london/ontario-hallway-healthcare-1.4923954 or https://theconversation.com/how-healthy-is-the-
canadian-health-care-system-82674 or https://www.conferenceboard.ca/CASHC/research/2012/inconvenient_truths.aspx
• Canada needs to review its drug programs. Drug
Costs continues to rise - In 2018, $14.4 billion
(42.7%) of prescribed drug spending is expected to
be financed by the public sector, while the
remainder will be financed by private insurance and
individuals paying out of pocket. Drug spending is
just part of the expected $253.5 billion in total
health spending in Canada this year.
• Hospitals (28.3%), drugs (15.7%) and physician
services (15.1%) are expected to continue to
account for the largest shares of health dollars
(close to 60% of total health spending). The
remaining 41% will be spent on other health care
goods and services, including long-term care
facilities and allied health professionals.
• Fraud or about 12B per year
https://www.claimsecure.com/en/whats-new-
blog/2019/march/11/fighting-fraud-waste-and-
abuse-for-a-healthy-business/
• Miss management and waste – Let’s say about 5% to
10% is waste (est.) then the value could be $11B to
25B per year. Could you imagine how dollars could
be stretched?

10. Global Delivery of Healthcare
Source - https://globalnews.ca/news/3599458/canadas-health-care-system-lower-performing-compared-to-its-peers-study/ or
https://www.theguardian.com/commentisfree/2018/feb/05/americans-uk-health-system-trump-nhs or
https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthcaresystem/bulletins/ukhealthaccounts/2017
• United Kingdom has many programs that are used to
reign in costs of healthcare, i.e. prescriptions drug
caps - https://theconversation.com/why-the-us-has-
higher-drug-prices-than-other-countries-111256
• Australia has one of the most efficient
healthcare system -
https://theconversation.com/australias-health-
system-is-enviable-but-theres-room-for-
improvement-81332

11. Summary
 Too many governments are throwing
money at they symptoms which never fixed
the root cause when it comes to poor
delivery of healthcare
 The rise of drug costs is becoming an issue.
Government need to look at all aspects of
drugs including procurement, approval,
private insurance vs public funding, etc.
National Pharmacare should never be based
on the proper business cases
 All governments around the world need to
put more focus on front-line services and
less emphasis on administration
 Governments are not getting value for
money for healthcare.
 Waste, fraud and other miss management
need to be reduced.