Half of Ontario's $33 billion in public health care
spending goes to the hospital sector and at least three-quarters
of that amount is labour income. Since health spending is the
largest single factor affecting provincial finances (and is
expected to be over 46 percent of all program spending during the
current provincial government's mandate), it is crucial to
monitor hospital pay trends.
Accordingly, this is the second annual Fraser Institute survey of
hospital pay that focuses on high earning employees, those making
over $100,000. This survey is the only comprehensive and detailed
database that can be monitored on an annual basis, though it is a
somewhat limited indicator of overall pay trends for all hospital
This Alert examines the recently released 2004 pay information in
the context of recent trends. A value-for-money assessment
follows, as do various policy recommendations. The appendix
provides details of data and methodology.