4/23/11

Docs and Drugs -- Diverging funding fortunes in Ontario?

According to the newly released Budget Estimates, the provincial government plans to increase OHIP spending (basically, spending on doctors) by $652 million over the current estimate of last year's spending.  That's a 5.3% increase.  Since 2009-10 (two years ago) the increase is $1.35 billion, or 11.5%.   A pretty hefty increase, continuing the generous increases in OHIP spending over the last number of years.

For many years, the drug companies also did well through provincial government spending increases.  This year, the government plans to increase drug spending 4.6%  ($165 million) over the current estimate for last year. This is only modestly higher than the overall budgeted health care increase of 4.24%.

Moreover, with a cut in drug spending in 2010-11, drug spending will still be $40 million less than it was two years ago in 2009-10.

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