Paying the Ultimate Price for Single-Payer Health Care

Magnificent view over Okanagan lake and the valley

There are many ways to examine the price we pay for Canadian health care. Economists (myself included) are often predisposed to defaulting to statistics summarizing the amount of health care dollars spent per person ($9,054) or as a portion of our economy (12.4 percent). However, there are other costs that we don’t see as readily – notably, the personal costs paid for our collective commitment to the failing single-payer health care model.

Consider the story of Joan Hama. The Kelowna woman’s doctors recommended that she receive a colonoscopy after going through a cancer screening. The recommended wait time? Eight weeks. She waited twice that time… and then her colon ruptured, nearly killing her. This near-death experience could have been avoided, had she simply received the diagnostic and subsequent treatment on time.

Unfortunately, for some patients, it’s even worse. New government data released by SecondStreet.org revealed that Joan isn’t alone – 1,586 patients in B.C.’s Interior Health region paid the ultimate price and died while waiting for treatment just this past year.

Of these, just under 15 percent died waiting for surgical treatments while the majority (over 85 percent) died waiting for a diagnostic scan. The latter should not be dismissed, as diagnostic imaging is a critical tool to help determine the severity of a patient’s condition and find out how urgently they need care..

Unsurprisingly, almost 40 percent of patients who died while waiting for surgical or diagnostic procedures had been waiting over the government’s own priority wait time target.

Again, that’s just in one region of one province. In 2023-24, B.C. saw 4,516 total waitlist deaths. Across Canada, it was 15,474. If the Kelowna area is an indicator, that number will continue to rise.

So, what’s to be done?

First, patients must be informed when they won’t get care in time. This is exactly why SecondStreet.org and a deceased patient’s family recently suggested Debbie’s Law, which would legally require health regions to tell patients if wait times for life-saving treatment exceed guidelines. This would arm patients with the knowledge that their life was at-risk and some might consider options outside the province.

Second, patients must be given an alternative. If governments are unable to provide medical or diagnostic care in a timely manner, they should be allowed to pay for care at non-government health providers. Unfortunately, provincial governments across Canada (with the exception of Quebec) have chosen to do the opposite. Together, the former BC Liberal party and NDP spent more than a decade battling the Cambie Surgery Clinic’s fight to provide private health care to patients failed by the public system. The result was a win for governments and the status-quo, and a loss for Cambie and the patients suffering on waitlists.

Finally, provincial governments should introduce reforms to cut waste and incentivize care. Hospitals in BC (and across most of Canada) are funded using an opaque and outdated method of funding called global budgets. Basically, hospitals are allocated a budget based on historical trends and then asked to do their best within that constraint. This method of funding is disconnected from the real-time demand for services, and treats patients like a cost – chipping away at the pre-defined budget. But there’s a better way. Research by the Montreal Economic InstituteCD HoweFraser Institute and others (including the author of this column) have pointed out that other universal health care countries around the world – particularly those with shorter wait times like Switzerland, the Netherlands and Germany – use a system called activity-based funding . This method of funding ensures money follows the patient and actually incentivizes care. Simply put, under this system, hospitals would be actively paid for the type and complexity of procedures needed by the 1,586 who died last year – there would be no need to force them to wait.

The failures of Canadian health care are more obvious than ever before. We don’t need to sacrifice our commitment to universal health care in order to fix it. And patients shouldn’t have to sacrifice their lives to preserve it. 

It’s time to take a prudent approach that takes the best lessons from other countries that do a better job, while allowing patients to get the care they need until we get our house – or rather, hospitals – back in order.

Bacchus Barua is the Research Director for SecondStreet.org, a Canadian think tank.


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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.