The truth about health spending in Alberta

In his annual television address to the province, Premier Ralph Klein argued that radical health reform – including privatization, de-listing and user fees – is necessary because costs are "spiraling out of control." But Klein has his facts wrong. Our health system is not about to hit the "debt wall." Here’s the real scoop on health spending in Alberta.

Even after increasing spending over the past two years to make up for years of deep budget cuts, Alberta still spends only about 5 percent of its provincial GDP on public health care, the lowest proportion of any province in the country. This figure has remained stable for more than 10 years – proving that costs are not spiraling out of control.

Real per capita government spending on health care in Alberta increased by a modest 6.3 percent between 1990-91 and 2000-01, with all of the increase coming in the last two years. Despite this jump, Alberta still spends about 4 percent less per person on health than the national average (compared to 16 percent less than the national average in 1995-96, when the Klein cuts were at their deepest).

Claims that health spending will soon consume half of the provincial budget are not borne out by the evidence. About 35 percent of the Alberta budget currently goes to health care, up from about 25 percent in 80s. But this jump has more to do with declining spending in other program areas than actual spending increases in health care.

Even using the government’s own figures, the cost of our health care system translates into only about $6.50 a day for each Albertan – a figure that most people in the province would probably feel comfortable with given the importance of health care.