Skip to main content

Cost of hospital treatment is falling



Ontario has the lowest hospital cost per weighted case of all the provinces.  And the cost difference between Ontario and the rest of the country is growing.

Hospital Cost Per Weighted Case ($)
2009-2010
2010-2011
2011-2012
Newfoundland
6,001
6,283
6,332
PEI
DQ
DQ
5,257
Nova Scotia
4,998
5,403
5,384
New Brunswick
5,104
5,380
5,390
Quebec
4,455
4,550
4,728
Ontario
5,164
5,174
5,184
Manitoba
5,403
5,438
5,396
Saskatchewan
5,722
5,883
6,174
Alberta
6,139
6,399
6,631
BC
5,456
5,571
5,232
North West Territories
N/R
N/R
N/R
Yukon
DQ
7,709
7,394
Weighted Average
5,172
5,281
5,335
Source: Canadian Institute for Health Information (CIHI):Canadian MIS Database Hospital Financial Performance Indicators, 2007-08 to 2011-12.  Note: comparable weighted case data not available prior to 2009-10 through this data base.  Data reported unadjusted by labour rate. "DQ" - data quality issue. "N/R" – not reported. Year ending April.  Cost per weighted case compares a hospital’s total acute inpatient care expenses with the number of acute inpatient weighted cases related to the inpatients that it provided care for. The result is the hospital’s average full cost of treating the average acute inpatient.

Ontario hospital costs per weighted case were just less than the Canada-wide average (including Ontario) in 2009/10 -- $8 less or 0.15%.  But two years later they were $151, or 2.83% less.

Real Cost Decline:  Hospital costs in Ontario have increased much less than inflation: going up 0.18% in 2010-11 and 0.21% in 2011-12.   Inflation for consumers was far higher: 3.6% for the year ended April 2011 and 2.1% for the year April 2012.  

The real costs of treating a hospital patient are falling. 

Hospital cost increases across Canada were significantly higher than Ontario with a 2.1% increase across Canada in 2010-11 and a 1.0% increase in 2011-12.  (Nevertheless, even these increases fell well short of Canada-wide consumer inflation of 3.2% and 2.0%.) 

The lower costs in Ontario occurs despite higher living costs in Ontario.  When labour rates are adjusted, Ontario hospital costs per weighted case are much lower than the Canada-wide average -- 10.8% lower than the Canada-wide average in 2011-12 ($598 lower).  This is an increase from a 9.7% differential in 2009-10 ($474).  

More tomorrow on changes in hospital administration and nursing.  

Photo: a Roman hospital with some of the same problems as Ontario, Pallamaio

Comments

Popular posts from this blog

Health care funding falls, again

Real provincial government health care funding per-person has fallen again this year in Ontario, the third year in a row.  Since 2009 real funding per-person has fallen 2.6% -- $63 per person. 

Across Canada real per person funding is in its fourth consecutive year of increase. Since 2009, real provincial funding across Canada is up $89 -- 3.6%.
In fact the funding gap between Ontario and Canada as a whole has gown consistently for years (as set out below in current dollars).

Ontario funds health care less than any other province -- indeed, the province that funds health care the second least (B.C.) provides $185 more per person per year, 4.7% more.  
Provincial health care spending in the rest of Canada (excluding Ontario) is now  $574 higher per person annually than in Ontario. 

 Ontario has not always provided lower than average health care funding increases-- but that has been the general pattern since 2005.
Private expenditures on health care have exceeded Ontario government increases …

Ontario long-term care staffing falls far short of other provinces

CUPE and others are campaigning for a legislated minimum average of four worked hours of nursing and personal care per resident per day in long-term care (LTC) facilities.  New research indicates that not only is LTC underfunded in Ontario, it is also understaffed compared to the other provinces. 
LTC staffing falls short:  The latest data published by the Canadian Institute for Health Information (and based on a mandatory survey undertaken by Statistics Canada) indicates that staffing at long-term care (LTC) facilities falls far short of other provinces. 
Part of this is driven by a low level of provincial funding for LTC.





Ontario has 0.575 health care full-time equivalent employees (FTEs) per bed staffed and in operation.[1]  The rest of Canada reports 0.665 health care FTEs.[2] The rest of Canada has 15.7% more health care staff per bed staffed and in operation than Ontario.[3] 


No other province reports fewer LTC health care staff per resident (or per bed) than Ontario.[4]

Occupancy r…

Six more problems with Public Private Partnerships (P3s)

The Auditor General (AG) has again identified issues in her annual reportwhich reflect problems with Ontario health care capacity and privatization.   First, here are six key problems with the maintenance of the 16 privatized P3 ("public private partnership") hospitals in Ontario:
There are long-term ongoing disputes with privatized P3 contractors over the P3 agreements, including about what is covered by the P3  (or “AFP” as the government likes to call them) contract.The hospitals are required to pay higher than reasonable rates tothe P3 contractor for  maintenance work the contractor has deemed to be outside of the P3 contract. Hospitals are almost forced to use P3 contractors to do maintenance work the contractors deem outside of the P3 contract or face the prospect of transferring the risk associated with maintaining the related hospital assets from the private-sector company back to the hospitalP3 companies with poor perf…