Privatization of hospitals would lead to more patient deaths

Hospital deaths would increase by as many as 2,200 a year if Canada introduced U.S.-style private for-profit hospitals into the health-care system, a new study suggests.

The results should send a sobering message to those advocating private-sector solutions for Canada’s health-care system, said lead author, Dr. Philip Devereaux, a cardiologist at McMaster University.

"Ralph Klein indicated at the last premiers’ conference, that he did not think that the public cared who delivered their care as long as it remained government funded," he said. "Our research suggests that in fact the public should care."

The team of 17 researchers, mainly from the universities of Toronto, Buffalo and McMaster, analyzed 15 American studies comparing death rates in for-profit hospitals with those in not-for-profit ones.

The studies included data on 38 million patients in 26,000 hospitals between 1982 and 1995.

The death rate in for-profit hospitals was 2 per cent higher than in not-for-profit facilities, the data found.

The explanation for the difference in death rates between the two types of hospitals is simple, said Devereaux, whose research is published in the Canadian Medical Association Journal.

Hospitals that must typically achieve a 10 to 15 per cent profit margin for shareholders, as well as pay taxes (not-for-profit hospitals don’t pay taxes), spent less money on hiring highly skilled doctors, nurses, pharmacists and other health-care staff.

Although the study involved U.S. data, the findings are directly relevant to Canada, because many of the same large American hospital chains included in the study would likely be bidding for Canadian hospitals if they were put up for sale, the researchers said.

"Although our health-care system may not be perfect, this is not one of the solutions," said Devereaux. "It seems clear that this changeover ... will make our system worse."

The study flies in the face of comments from Canadian policy-makers, including Senator Michael Kirby and Health Minister Anne McLellan, who have stated that ownership of hospitals doesn’t matter as long as they remain government-funded and care is delivered efficiently and cheaply, said Michael McBane, coordinator of the Canadian Health Coalition. "To open for-profit hospitals in light of this study would be highly unethical and bordering on the criminal," he said.