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Tories distort facts about health
spending
By Gil McGowan, AFL Staff
Health care costs in Alberta have doubled…
Health spending will soon eat up more than half of the provincial budget…
These are just two of the attention-grabbing statistics that the Alberta
government has been using over the past few weeks to convince Albertans that
Medicare is no longer affordable.
The goals of the government’s latest public-relations offensive have never
been formally stated, but they are clear nonetheless.
In a general sense, the Premier and other members of his government want
Albertans to believe that public health care is not working and that some form
privatization is the only option.
In a more specific sense, the barrage of negative publicity about public
health care is designed to soften the public up for the Mazankowski Report –
which Premier Klein has promised will act as a blueprint for "radical
reforms" in our province’s health care system.
So, from a purely strategic point of view, all the Klein government’s
"sky-is-falling" rhetoric about health spending makes sense – it’s
a great way to convince people that dramatic, private-sector solutions are
needed.
The only problem with the government’s "facts" is they are (at
best) misleading or (at worst) entirely false.
Most of the numbers that the government points to as "proof" that
Medicare is unsustainable come from the latest report on provincial health
spending produced by the Canadian Institute for Health Information (CIHI), a
well-respected non-partisan research agency that is funded jointly by Statistics
Canada and the federal Health department.
According to the report, which was released in October, government spending
on health care has increased substantially in every province over the past few
years. In Alberta, the CIHI report shows that provincial health spending has
gone from about $4 billion in 1995-96 to slightly more than $6 billion in
2000-01.
On the surface, this seems like a big jump – exactly the impression that
the Klein government wants to leave with voters.
However, these are "raw figures" that do not take into account a
number of important factors such as inflation, population growth and the fact
that Alberta’s health system is still trying to make up for the deep cuts of
the mid-90s.
In order to get a clearer picture of what’s really going on with health
spending in Alberta, you have to dig deeper into the CIHI report – something
the Klein government has obviously failed to do.
A close reading of the report shows that when you factor in inflation,
Alberta spent $1,823 per person on health care in 2000-01 compared to the $1,728
it spent per person in 1992-93.
In other words, real health spending has gone up by about 5.5 per cent over
eight years – hardly "spiraling out of control" as the government
would have people believe. And spending on health certainly hasn’t
"doubled" as Premier Klein has been quoted as saying several times.
The CIHI report also debunks the argument that health spending will soon
account for more than half of the provincial budget.
According to CIHI, health spending in Alberta has remained fairly constant at
between 30 and 35 percent of the provincial budget for the past ten years. There
is no evidence that this proportion is likely to change – in fact, the CIHI
report says that health spending is likely to fall to about 33 percent of the
budget in 2001-02 from 35 percent in 2000-01.
Aside from the obvious mistakes that the Klein government has made in
interpreting information from CIHI, it is also interesting to take a look at a
number of figures from the report that the government has carefully refused to
discuss – figures which, no matter how you try to bend them, cannot be used to
support the argument that health spending is out of control.
For example, the report shows that over the past 20 years, Alberta has never
spent more than 6 per cent of its gross domestic product (GDP) on health care,
compared to the 6.5 to 8 percent spent by all other provinces.
These figures are significant for two reasons. First, because they show once
again that spending is not out of control. And second because they show that we
are not "living beyond our means." Who would argue that 6 percent of
our provincial income is too much to pay for Medicare?
Another interesting finding from the report is that most of the growth in
health spending in Alberta can be attributed to two factors: an increase in
one-time spending for capital projects that were woefully neglected during the
early years of the "Klein revolution"; and spending on drugs, which
not incidentally is probably the most "privatized" part of the health
system.
The bottom line in all of this is that the sky is not falling when it comes
to health spending in Alberta.
That doesn’t mean that we shouldn’t talk about ways to improve the system
or get more for our tax dollars. But if we’re going to have a debate, it
should be based on the facts.
Unfortunately, given their actions to date, the Klein government seems more
interested in whipping up hysteria in order to win support for privatization
than looking at the real nature of the problem.
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