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#19 - More Money Won't
Cure Nationalized Health Care
Supporters of single-payer
government health care typically argue that long waits for medical
care in countries with such systems can be blamed on those governments
not spend enough on health care. However, an analysis of waiting
times and health spending in the Canadian national health system
found that increasing government health spending has virtually
no effect on waiting times.1 Among
the study's findings:
* Increasing total, per capita
government health spending had no net effect on overall waiting
times in 9 of the 10 Canadian provinces.
* Provinces with more government
health spending per capita do not experience shorter waiting
times, nor do they obtain more procedures for their money. In
fact, they get fewer major surgeries and total procedures.
* Spending more per capita
on cancer chemotherapy, radiation therapy, and cardiovascular
surgery actually resulted in longer waiting times for those procedures.
* Only increased per capita
government spending on drugs actually reduced waiting times for
patients. However, relative to other sectors (hospitals, doctors,
nursing homes, etc.), prescription drugs receives a small share
of both current (6%) and new (1%) Canadian government health
spending.
The implication is, "that
increases in health spending are either consumed by wage and
price increases or are for some reason being devoted to nonsurgical
uses." The real problem is that government health systems
don't provide the right incentives for health care providers
to treat patients quickly and efficiently. Absent major reforms
and privatization, no amount of government spending will eliminate
medical care waiting lists in a national health system. Indeed,
Canada already spends more on health care than all but three
countries in the world.2
Until such reforms, Canadians
will still be able to joke that, "Thanks to our universal
health care system, we are all entitled to wait in pain together
for treatment."
Footnote:
1 Zelder, Martin, "Spend More,
Wait Less? The Myth of Underfunded Medicare in Canada,"
The Freaser Institute, Vancouver, September 2000. This paper
can be found at: http://www.fraserinstitute.ca/admin/books/chapterfiles/Introduction-aug00ff(v8).pdf#4
2 Canada spends 9.3% of GDP on health
care, the same as France and less than only the U.S. (12.4%),
Switzerland (10.4%), and Germany (10.3%). Organization for Economic
Cooperation and Development, OECD Health Data 2001 Table 10:
Total expenditure on health, %GDP, OECD, Paris. The table can
be found at: http://www.oecd.org/EN/statistics/0,,EN-statistics-12-nodirectorate-no-no--12,00.html
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