This report studies the financial sustainability of health
spending by provincial governments in Canada. This
report uses an empirical trend analysis to estimate
long-term future sustainability. The trend is derived from the
average annual growth rates for total provincial government
health expenditures and total available provincial government
revenue from all sources over the most recent 10-year period.
Government spending on health care is considered to be
financially unsustainable when it grows faster (on average)
than revenue over the trend period.
This report also examines the long-term feasibility of the
attempts of provincial governments to deal with the
unsustainable growth in health spending through increased
taxation and centrally planned rationing. Our analysis
partially exposes the degree to which Canadians are paying more
for government health insurance while getting less in