THE HUB COLUMN: A roadmap to more choice in health care

Canada is a strange place when it comes to health care.

You could spend your whole paycheque on fast food and alcohol—products that are clearly unhealthy in excess—and the government is fine with that. But, generally speaking, the government won’t let you spend your paycheque on private surgery at a local clinic in order to help your body—a hip operation, knee surgery, etc.

Ottawa has even cut funding to provinces that allow patients to pay for health services at non-government facilities—over $82 million in funding cuts in 2023 alone. Various provincial policies also restrict private options, either to comply with Ottawa’s mandate or because provincial gatekeepers also believe in these bans. Either way, it’s downright bizarre.

In Canada, you can take on a second job to pay for surgery for your dog or cat, but not for a loved one who walks on two legs. Well, you can, but only if you pay for that surgery in another province. This is why, for example, you hear of Calgarians travelling to Vancouver for surgery while Vancouverites travel to Calgary. This happens throughout Canada, but, in true Canadian fashion, these bans generally don’t apply in Quebec—in part due to a Supreme Court decision that the courts refused to extend to the rest of the country.

No other developed nation has these kinds of nonsensical bans on non-government health services. Why? Because the bans restrict access to health care and they’re actually downright unethical. Why on earth does anyone consider it reasonable for the state to impose high taxes in the name of health care, fail to deliver said health care services, and then ban alternatives at the same time? Joseph Stalin would be proud.

In order to identify a roadmap out of this disorder, SecondStreet.org recently hired the law firm Fasken Martineau DuMoulin LLP to identify the legal steps necessary—at the federal level—to remove the ban. This would allow Canadians the same choice that patients in countries with better-performing universal health-care systems enjoy: use the public system or pay for treatment at local, non-government clinics. (Subsequent policy briefs will examine how to remove barriers at the provincial level.)

Thankfully, the necessary changes that are required at the federal level are quite straightforward. First, the federal government could add a small 147-word section in the Canada Health Act to make it clear that choice is allowedSecond, the government could simply remove federal interpretation letters that outline the government’s ban on choice. Voila. This relatively simple fix could finally help unleash Canada’s health-care potential and immediately help reduce patient suffering from coast to coast.

Consider Jeff Krushell’s story. The Alberta patient, who lives just outside of Edmonton, faced severe back problems in 2022. After languishing on a government waiting list and being told he faced at least a year-long wait for surgery, Krushell looked at private options. He simply couldn’t cope with the pain. As he described it, the pain led to him having “very dark thoughts.”

Krushell discovered that the only private clinic in Canada that performed the type of surgery he required was actually just down the road in Calgary. He was elated at how convenient it could be—he could drive there next week if they had an opening

But alas, the clinic informed him that because he was from Alberta, the government doesn’t allow him to pay for surgery at their facility. They’re allowed to provide private treatment to patients from Saskatchewan, British Columbia, and the rest of the country, just not Alberta.

Ultimately, Krushell and his wife travelled all the way to Atlanta for surgery. Instead of having his children by his side as he recovered, the burden of care lay squarely on his wife. Plus, he had to pay for airfare, hotels, and other travel expenses, causing more of a financial burden thanks to the government.

Canada is the only country that forces patients like Jeff to travel—every other developed country with a universal system lets patients pay for care locally. So, it’s obvious that choice could be allowed, and the sky would not fall. In Sweden, for instance, most patients use their universal public system, but 13 percent have decided to pay for private health insurance. When those patients use private treatment, they take pressure off the Swedish public system, allowing everyone else to move up in line.

To be sure, allowing choice in health care won’t solve all the problems our health system faces, but it would help countless patients access timely treatment while reducing wait times. Thankfully, we now have a roadmap that shows how to undo the federal ban and help unlock the health sector’s potential.

Colin Craig is the President of the Canadian think tank SecondStreet.org. In his spare time, he is working on exercising more and cutting back on sweets.

This column was originally published in The Hub on May 24, 2025.

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Prevention – reduce demand in the first place

If Canadians lived healthier lives, we could reduce demand for emergency services, orthopaedic surgeries, primary care and more. 

For instance, if you visit the Canadian Cancer Society’s website, you’ll read that “about four in ten” cancer cases are preventable. The Heart and Stroke Foundation notes that “almost 80 percent of premature heart disease and stroke can be prevented through healthy behaviours.” A similar number of Diabetes cases are also preventable. 

Many joint replacements and visits to ERs and walk-in clinics could also be avoided through healthy living. 

To be sure, not all health problems can be avoided through healthy living – everyday the system treats Canadians with genetic conditions, helps those injured in unavoidable accidents and more.  

But there is an opportunity to reduce pressure on the health care system through Canadians shifting to healthier lifestyles – better diets, more exercise, etc. 

To learn more, watch our Health Reform Now documentary (scroll up) or see this column. 

Partner with non-profits and for-profit clinics

European countries will partner with anyone who can help patients. 

It doesn’t matter if it’s a non-profit, a government entity or a private clinic. What matters is that patients receive quality treatment, in a timely manner and for a competitive price.  

In Canada, governments often delivery services using government-run hospitals instead of seeing if non-profit or private clinics could deliver the services more effectively. 

When governments have partnered with non-profit and private clinics, the results have often been quite good – Saskatchewan, Ontario and British Columbia are just a few examples of where partnerships have worked well. 

Canada should pursue more of these partnerships to reduce wait times and increase the volume of services provided to patients.  

To learn more, watch our Health Reform Now documentary (scroll up) or see the links above. 

Make cross border care more accessible

In Canada, citizens pay high taxes each year and we’re promised universal health care services in return. The problem is, wait times are often extremely long in our health system – sometimes patients have to wait years to see a specialist or receive surgery. 

If patients don’t want to wait long periods, they often have to reach into their own pocket and pay for treatment outside the province or country. 

Throughout the European Union, we also find universal health care systems. But a key difference is that EU patients have the right to go to other EU countries, pay for surgery and then be reimbursed by their home government. Reimbursements cover up to what the patient’s home government would have spent to provide the treatment locally. 

If Canada copied this approach, a patient waiting a year to get their hip operation could instead receive treatment next week in one of thousands of surgical clinics throughout the developed world. 

Governments benefit too as the patient is now back on their feet and avoiding complications that sometimes come with long wait times – meaning the government doesn’t have to treat those complications on top of the initial health problem. 

To learn more, watch our Health Reform Now documentary (scroll up) or this shorter video. 

Legalize access to non-government providers

Canada is the only country in the world that puts up barriers, or outright bans patients from paying for health services locally. 

For instance, a patient in Toronto cannot pay for a hip operation at a private clinic in Toronto. Their only option is to wait for the government to eventually provide treatment or leave the province and pay elsewhere. 

Countries with better-performing universal health care systems do not have such bans. They allow patients a choice – use the public system or pay privately for treatment. Sweden, France, Australia and more – they all allow choice. 

Why? One reason is that allowing choice means some patients will decide to pay privately. This takes pressure off the public system. For instance, in Sweden, 87% of patients use the public system, but 13% purchase private health insurance. 

Ultimately, more choice improves access for patients. 

To learn more, watch our Health Reform Now documentary (scroll up) or watch this short clip on this topic. 

Shift to funding services for patients, not bureaucracies

In Canada, most hospitals receive a cheque from the government each year and are then asked to do their best to help patients. This approach is known as “block funding”. 

Under this model, a patient walking in the door represents a drain on the hospital’s budget. Over the course of a year, hospital administrators have to make sure the budget stretches out so services are rationed. This is why you might have to wait until next year or the year after for a hip operation, knee operation, etc. 

In better-performing universal health systems, they take the opposite approach – hospitals receive money from the government each time they help a patient. If a hospital completes a knee operation, it might receive, say, $10,000. If it completes a knee operation on another patient, it receives another $10,000. 

This model incentivizes hospitals to help more patients – to help more patients with knee operations, cataract surgery, etc. This approach also incentivizes hospitals to spend money on expenses that help patients (e.g. more doctors, nurses, equipment, etc.) rather than using the money on expenses that don’t help patients (e.g. more admin staff). 

To learn more about this policy option, please watch our Health Reform Now documentary (scroll up) or see this post by MEI.