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Briefing Note
The recent economic climate has been a challenge in all sectors of life, including the health care sector. The purpose of this document is therefore to propose a 10% budget cut for health care in the province, based on the fact that severe economic circumstances have necessitated a lower allocation of government funding for this purpose. The question and focus for this briefing note is therefore: How can we achieve the necessary budget cut without compromising the quality of care taxpayers and insurance holders have come to expect in this country?
The current economic turndown has affected both individuals, businesses, and governments. Most individuals are in a situation where they need to manage their money very carefully in order to make ends meet in an economy where salaries remain the same while prices increase incrementally. The same is true for governing bodies such as ours.
The cost of health care, like everything else, has shown a consistently upward trend. By now, this expense constitutes about 40% of our provincial GDP. This creates a widespread challenge in terms of our ability to fund the health care needs of our citizens.
This is why it is vital, especially in today's economic climate, for us to arrive at an effective, efficient, and safe way of applying taxpayers' money to maintain...
This means that we allocate a fixed amount of funding to providers, which they use to pay for insured health care services over a fixed period of time. The largest part of these expenditures are allocated to hospitals, accounting for about 28% of the total cost.
An interesting factor in his regard, and one that we need to take seriously, is that Canada is unusual in terms of its health care funding as compared to the rest of the world. Indeed, most countries fund their health care needs by other means than global budgets, using an ABF, or activity-based funding, basis for their health care budgets. This means that such counries allocate funding according to the specific type and amount of services provided to their users. This could be significant to us as we attempt to make decisions regarding budget allocations.
healthcare. However, it must also be taken into account that more services would require more funding. If our province were therefore to prove in great need regarding the number and types of services required, spending might rise rather than decrease. On the other hand, ABF systems include financial incentives that can…
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