Galt Global Review

QFS 360

 
October 30, 2007

Private Health Care a Growing Business in Canada


by Adrian Brijbassi


The health of businesses involved in the medical industry in Canada has never been better. Contrary to popular perception, privately provided medicine and surgery has been available in Canada for decades. Procedures, such as plastic surgery, that are not covered under the Canada Health Act have historically been provided by private practitioners. In recent years, however, doctors and entrepreneurs in the medical field have started to offer services that are covered under the national health program. Economically speaking, they are filling a demand.

The bottom-line results have been astounding. According to a report published by the Canadian Institute of Health Information (CIHI), the health-care costs for each Canadian citizen and legal resident was approximately $4,400 in 2005. That was a total of $142 billion, but the government was only responsible for paying $98.8 billion of the sum.

The rest - $43.2 billion - went to private enterprises that provide medical services to a nation recognized globally for its universal system. The most significant strides for private health care have taken place in Quebec, where clinics that offer magnetic resonance imaging (MRI) scans and joint surgery have opened. The cost for using private clinics is steep. For example, hip replacement surgery at the Duval Orthopedic Clinic in Montreal can run a patient $12,000. If the surgery were to be done in a nearby hospital, the tab would be picked up by the provinicial government. The well-documented problem that creates the for-profit demand is wait times in the public system.

Surgerical procedures not considered emergencies can leave patients suffering with tremendous pain for many months. Fed up with the wait times, more and more Canadians are looking for alternatives, and more doctors are setting up shops to relieve them of their chronic aches.

“We and our patients remain frustrated by waiting periods that exceed all ethical standards," said Dr. Brian Day in August during his inaugural speech as the president of the Canadian Medical Association. “To allow acute problems to become chronic makes no sense and exacerbates the already existing crisis in chronic care.”

Day’s appointment was seen as a milestone moment for the advocates of a two-tiered system in Canada. Since 1995, the surgeon from Vancouver, British Columbia has run a private clinic to treat orthopedic injuries, as well as cosmetic, dental and eye procedures not covered by the Canada Health Act. He maintains his reasons for wanting to ramp up private care revolves around his concern for patients, not profits.

“My focus is to ensure ALL Canadians receive timely access to necessary care, regardless of ability to pay. That can only happen when we put the patient first. Not politicians, not hospital administrators, not health professionals, not trade unions. The patients,” he said. “The ability to pay should never be a factor for any patient needing health care in Canada.”

Day’s clinic, the Cambie Surgery Center, is able to operate because it caters to a small number of citizens -- including police officers, military members, and some unionized construction workers -- who are not bound to the public system. Those patients who are legally allowed to pay to use clinics like Day’s receive treatment without the long wait. Day wants such service available to everyone and he’s not alone. For-profit clinics are opening across the country and the CIHI report on national health care said residents of Ontario, the nation’s most populous province, spent $19 billion on private-sector health care in 2005.

Critics, though, maintain more private services means increased costs and more delineation between rich and poor. As Day suggests, when it comes to the intimate decisions in life, Canadians are as wary of privatization as Americans are of government intervention. What’s true is both systems have massive flaws that frustrate their citizens. In a poll by ABC News and the Washington Post, 62 percent of Americans said they favored a switch to universal health care as long as there weren’t any waiting lists. As it is, more than 40 million Americans go uninsured and have to pay exorbitant costs when they get sick. In Canada, everyone receives basic insurance, but there is no guarantee in the government system that individuals will receive the care they need when they need it.

Of the two nations, Canada ranks slightly higher in providing health care, according to the World Health Organization. It comes in 30th while the U.S. is 37th. That’s no solace to the Canadians who have to live in pain while waiting to reach the front of the line for surgery in the public system. Two years ago, Mary Brown Gregory told the Montreal Gazette she paid $11,000 to the Duval Clinic to get her knee replaced because she couldn’t take living with the pain any longer.

"It was worth every penny, and I was desperate and I had the money,” said Gregory, who was 81 at the time. “But I think it's very sad that others have to wait."