MAY 30, 2006
VOLUME 3 NO. 10

POLICY & POLITICS

WHO study dares to compare
Canada to its peers

Major report casts a positive light on our
much-maligned health system


Canada's healthcare system isn't in quite the shambles everyone thinks, according to a major new report commissioned by the World Health Organization (WHO). In fact, even in areas where we think we're doing poorly — such as public expenditure and stroke care — we're not doing too badly, especially compared to other wealthy nations.

In the beginning...

Public healthcare origins around the world

Germany: Considered the true pioneer of public healthcare, Germany passed its national health insurance law back in 1883 as part of a broad social welfare scheme. Barring the dark interlude of the Nazi regime, which revoked coverage for Jews and Socialists, the modern system has been in continual evolution since.

Sweden: Another very old system, Sweden's County Councils began offering hospital services in 1928 and through a series of reforms culminating in the 1946 National Health Insurance Act the modern system took shape.

UK: The government of David Lloyd George introduced the very modest National Health Insurance Act of 1911, which provided healthcare coverage to workers in certain occupations. The National Health Service Act of 1946 brought universal healthcare to the UK.

Canada: Saskatchewan's 1947 universal hospital insurance would serve as the model for the federal Medical Care Act of 1966. The system was further solidified by the 1984 Canada Health Act.

France: This elaborate system has roots in the 19th century. Key developments along the way include a 1930 law which provided insurance to over half the population and a 1974 law which expanded coverage to all citizens.

USA: In 1965, Lyndon B Johnson's administration created Medicaid, the welfare health program for the very poor and Medicare, an entitlement healthcare program mainly for seniors. The US does not provide universal coverage.

Australia: In 1948, legislation was passed to create a public health system akin to Britain's. The Supreme Court found it unconstitutional, and only a small part of the bill, a public prescription drug plan, survived. The 1973 Health Insurance Act brought in Medicare. In 1976 a government-run voluntary supplementary program called MediBank Private was added.

This wasn't exactly what the report's author, Gregory Marchildon, PhD, Research Chair in Public Policy and Economic History at the University of Saskatchewan, was expecting. "One of the biggest surprises was how well Canada compared on the population health indicators — better than I expected," says Dr Marchildon.

The 156-page report entitled Health Systems in Transition: Canada, was released in April and is part of a series of studies by the WHO's European Observatory on Health Systems and Policies. Dr Marchildon hopes physicians will find the 'eagle eye' sketch of our system in his work useful. To put the whole thing in context he compared our system to those of the US, UK, France, Sweden and Australia.

So did he discover a healthcare system out there that's eerily similar to our own? "No," he says bluntly. "In reality there are such significant differences that I'd be hesitant to say that any country really looks like Canada or that there are even two countries out there that look alike. I came to realize that because of very different histories and institutions countries are going to produce different healthcare outcomes."

LOOK DOWN UNDER
Still, we can learn a lot by comparing our system to those in similarly developed countries and perhaps the most apt is Australia. "You can certainly see many of the same sort of tensions we have in Canada in Australia, which is also a federal system," says Dr Marchildon. "Australia's commonwealth-state government meetings have the same sort of calls for more money from the states as our federal-provincial summits and the same tensions over who does what."

In fact, this kind of funding tug-of-war seems to be part and parcel of any federal system. In Germany you'll find the Lènder frequently squabbling with the feds in Berlin. And there's a lot more wrangling over public health dollars between Washington and the 50 states than the casual observer would think.

Australia also shares two of Canada's biggest problems, namely regional income disparities and dreadful outcomes for aboriginal people. "I think this a very important comparison," opines Dr Marchildon. Australia's Health Systems in Transition report concluded that: "Despite a generally positive assessment, there is dissatisfaction with particular aspects (such as long hospital waiting lists), and among particular population groups (such as people in rural areas).... [T]he health status of Aboriginal Australians remains abysmal."

SICKENINGLY SWEDE
Sweden is regularly lauded as the best public system in the world. On the surface, the Scandinavian nation seems to be doing much better than Canada. It boasts a higher life expectancy, lower infant mortality rate, a better doctor-to-patient ratio and lower public expenditures. But there's more than meets the eye. "Are they getting a bigger bang for their public dollar?" muses Dr Marchildon. "Maybe. But a bigger bang for their dollar overall, I'm not so sure — there was a very significant constraint on public expenditures during the 1990s and a huge spike in private expenditure during this same period." (See the chart "Who spends what" below for more details.)

THE BAD NEWS
The fact remains there are areas where Canada lags far behind other similar countries. "I was surprised at the mixed results of healthcare outcome rankings, some were moderate-to-poor — like cancer," says Dr Marchildon (see "How we die" below for rankings). "I wasn't quite expecting that. More work needs to be done figuring out why our infant mortality rates are what they are, especially given how wealthy this country is and how much we invest in healthcare. Clearly we should be seeing better results."

Health Systems in Transition: Canada is published by the University of Toronto Press ($25). You can read a truncated version for free at www.euro.who.int/observatory/hits/TopPage

 

 

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