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THE CANADIAN HEALTH CARE SYSTEM: OVERVIEW

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Title: THE CANADIAN HEALTH CARE SYSTEM: OVERVIEW


1
THE CANADIAN HEALTH CARE SYSTEM OVERVIEW
  • Class Discussion
  • How successful has Health care been in broadening
    and equalizing access to the medical care system
    for all Canadians?
  • Has change in accessibility led to changes in the
    overall health of the population or in the
    distribution of health of the population?
  • The Reform of Health Care What's wrong with the
    health care system?
  • What kinds of changes are needed?
  • What kinds of changes are being proposed and why?

2
THE CANADIAN HEALTH CARE SYSTEM OVERVIEW
  • No such thing as the Canadian Health Care
    System
  • In fact - 10 provincial systems working in
    parallel - minor differences between provinces
    re cost/fees scheduled items, etc.
  • It is joint operation of, and co-operation
    between, provinces that allows us to speak about
    the 'Canadian' system
  • System is the envy of many others
  • Americans particularly
  • Brits
  • Germans, other Europeans

3
Six features/characteristics of Western health
care systems (Torrance, 1987)
  • 1. Heavy emphasis on curative medicine as
    enshrined in private practice and acute-treatment
    hospitals with little attention to sources of
    illness, prevention, public health or
    rehabilitation
  • Growth of specialization at expense of primary
    care
  • 3. Rigid division of labour that discourages
    reallocation of roles

4
Six features/characteristics of Western health
care systems
  • 4. Creation of new sources of corporate profits
    professional wealth from state-subsidized care
  • Intrusion of medical industry into range of
    problems previously considered outside its
    competence
  • 6. Fiscal crisis

5
THE DEVELOPMENT OF THE HEALTH CARE SYSTEM IN
CANADA
  • Weller Manga (1983) identify 3 policy periods.
  • 1. Benign neglect (up to 1945)
  • 2. Shared cost agreements (1945-76)
  • Established Program Areas Acts (1977)
  • 4. Federal withdrawal (1990 - ?)

6
Benign Neglect
  • Little government involvement.
  • Health a provincial responsibility with few
    exceptions (native Canadians, regulation of
    environment and food radiation, veterans health).

7
Benign Neglect
  • Public health a government concern (water, food
    quality regulation of restaurants, etc.)
  • Private health a private matter
  • Rise of physician dominance through late 19th and
    early 20th century.

8
Benign Neglect
  • 1912 Canada Medical Act
  • Marked the turning point in the position of
    allopathic practitioners (physicians)
  • Licensing of physicians others excluded
    chiropractors, natural paths, apothecary,
    midwifery...
  • Proposed and spearheaded by Dr. Thomas Roddick -
    physician turned politician.

9
Benign Neglect
  • 1920's Flexner report
  • Advocated rise of 'scientific' biomedicine at
    expense of public health
  • Shaped curriculum of medical schools affiliation
    with universities (legitimation)
  • Radically changed medical education in both
    Canada and US

10
  • 1920's Flexner report
  • Some successes (vaccination for polio,
    smallpox...)
  • Insurance private, typically only middle-class
    easterners could afford it or had it offered to
    them... this fed flames of discontent in the
    west...
  • Dirty 30's - rise of labour movements, pressure
    for improved living conditions/standards

11
Shared Cost Arrangements
  • Post WWII - prosperity and renegotiation of
    social contract in UK - rise of welfare state
    establishment of NHS
  • 1947 - Saskatchewan - institutes compulsory
    hospital insurance scheme
  • 1948 - National Health Program - comprised of 10
    granting schemes for health surveys, public
    health care, tuberculosis, cancer, mental health,
    sexually transmitted diseases, crippled
    children... and hospital construction
  • 1949 - joined by Alberta and B.C.

12
Shared Cost Arrangements
  • 1958 HOSPITAL INSURANCE DIAGNOSTIC SERVICES ACT
  • Public insurance provided for services offered in
    hospitals but not for nursing homes, mental
    institutions, sanatoria, etc.
  • Costs of insurance shared - feds paid 25 per
    capita and 25 of total (National) cost
  • Very popular, stopped barriers to access,
    defaulting on hospital bills, etc.

13
Shared Cost Arrangements
  • Raised physician incomes
  • But - institutionalized care - made it hospital
    based, acute focussed
  • 1962 - Saskatchewan - extends insurance to cover
    all physician services - doctors strike!

14
Shared Cost Arrangements
  • 1962-64 EMMETT HALL COMMISSION
  • This commission on health services made two
    recommendations
  • That government, in co-operation with the
    provinces, should introduce universal health care
  • 2. Recommends universal health insurance
    criteria to be guided by 4 principles

15
  • Universal health insurance criteria to be guided
    by 4 principles
  • 1. public administration
  • 2. comprehensiveness
  • 3. universal coverage
  • 4. portability
  • accessibility (added in 1984)
  • MEDICAL CARE ACT of 1966
  • implemented between 1968-72 - set stage for
    universal health care insurance

16
ESTABLISHED PROGRAMS FUNDING ACT (1977)
  • Financing of health care reorganized - direct tax
    transfers rather than capita reimbursement
  • Funding too uncertain for provinces, too
    inflexible
  • Provinces reimbursed after payout - cash-flow
    problems unforeseen costs for provinces with
    rapid population change
  • For Feds - arrangement too costly!
  • New formulas agreed to by Provinces and Feds
  • But - fears of erosion of underlying principles
  • USER FEES, EXTRA BILLING

17
TODAY?? Federal Withdrawal
  • April 1990 - Bill C-69 - now law
  • Withdrawal of tax transfers from Feds for Health,
    Welfare and Education
  • Size of current Ont. deficit largely due to
    shortfall in transfer payments - all provinces
    hit hard by this
  • On the day the Feds announced cuts in transfer
    payments, Clyde Wells (NFlD) announced closure of
    200 hospital beds
  • What is the future of public health insurance?

18
THE CANADIAN HEALTH ACT
  • The Canada Health Act (CHA) is Canada's federal
    health insurance legislation.
  • The provinces of Canada are constitutionally
    responsible for the administration and delivery
    of health care services.
  • They decide where their hospitals will be
    located, how many physicians they will need, and
    how much money they will spend on their health
    care systems.
  • The CHA establishes the criteria and conditions
    related to insured health care services

19
THE CANADIAN HEALTH ACT
  • The national standardsthat the provinces and
    territories must meet in order to receive the
    full federal cash transfer contribution under the
    transfer mechanism, that is, the Canada Health
    and Social Transfer (CHST).
  • The aim of the national health insurance program
    is to ensure that all residents of Canada have
    reasonable access to medically necessary insured
    services without direct charges.

20
THE CANADIAN HEALTH ACT
  • Requirements of the Act
  • The CHA contains nine requirements that the
    provinces and territories must meet in order to
    qualify for the full federal cash contributions
  • Five program criteria that apply only to insured
    health care services
  • Two conditions that apply to insured health care
    services and extended health care services and
  • Two extra-billing and user charges provisions
    that apply only to insured health care services.

21
CHA - THE CRITERIA
  • Public Administration
  • Comprehensiveness
  • Universality
  • 4. Portability
  • 5. Accessibility

22
Public Administration
  • This criterion applies to the health insurance
    plans of the provinces and territories (not to
    hospitals or the services hospitals provide).
  • The health care insurance plans are to be
    administered and operated on a non-profit basis
    by a public authority, responsible to the
    provincial/territorial governments and subject to
    audits of their accounts and financial
    transactions.

23
Comprehensiveness
  • The health insurance plans of the provinces and
    territories must insure all insured health
    services (hospital, physician, surgical-dental)
    and, where permitted, services rendered by other
    health care practitioners.

24
Universality
  • One hundred percent of the insured residents of a
    province or territory must be entitled to the
    insured health services provided by the plans on
    uniform terms and conditions.
  • Provinces and territories generally require that
    residents register with the plans to establish
    entitlement.

25
Portability
  • Residents moving from one province or territory
    to another must continue to be covered for
    insured health care services by the "home"
    province during any minimum waiting period, not
    to exceed three months, imposed by the new
    province of residence.
  • After the waiting period, the new province or
    territory of residence assumes health care
    coverage.
  • Residents temporarily absent from their home
    provinces or territories, or from the country,
    must also continue to be covered for insured
    health care services.

26
Accessibility
  • The Canada Health Act of 1984 added accessibility
    to make five principles
  • The health insurance plans of the provinces and
    territories must provide reasonable access to
    insured health care services on uniform terms and
    conditions, unprecluded or unimpeded, either
    directly or indirectly, by
  • charges (user charges or extra-billing)
  • others (age, health status, SES.

27
Accessibility
  • Reasonable access in terms of physical
    availability of medically necessary services has
    been interpreted under the Canada Health Act
    using the "where and as available" rule.
  • Thus, residents of a province or territory are
    entitled to have access to insured health care
    services at the setting "where" the services are
    provided and "as" the services are available in
    that setting
  • Reasonable compensation to physicians and
    dentists for all the insured health care services
    they provide, and payment to hospitals to cover
    the cost of insured health care services.

28
CHA THE CONDITIONS
  • 1. Information the provincial and territorial
    governments are to provide information to the
    Minister of Health as may be reasonably required,
    in relation to insured health care services and
    extended health care services, for the purposes
    of the Canada Health Act.
  • 2. Recognition the provincial and territorial
    governments are to appropriately recognize the
    federal contributions toward both insured and
    extended health care services.

29
CHA - Extra-billing and User Charges
  • The cost of the new plan were to be shared 50/50
    by the federal and provincial governments
  • They were also to be shared in a way that would
    serve to redistribute income between the proorer
    and richer provinces

30
CHA - Extra-billing and User Charges
  • 1. Extra-billing this occurs if a physician or
    a dentist directly charges an insured person for
    an insured service that is in addition to the
    amount that would normally be paid for by the
    provincial or territorial health insurance plan.
  • For example, if a physician were to charge
    patients five dollars for an office visit that is
    insured by a health insurance plan, the
    five-dollar charge would be extra-billing.

31
CHA - Extra-billing and User Charges
  • 2. User charges these are direct charges to
    patients, other than extra-billing, for insured
    services of a province or territory's health
    insurance plan that are not payable, directly or
    indirectly, by the health insurance plan.
  • .For example, if patients were charged a fee
    before being provided treatment at a hospital
    emergency department, the fee would be considered
    a user charge.
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