Let private cash improve health care

ederal and provincial governments face serious fiscal and political challenges as a result of slow economic growth. Budget deficits, rising debt, high unemployment and the pressure for austerity policies would all be eased if more robust growth in the economy of Canada. It is ironic that the government continues to economic growth to occur in one of our key sectors: health care. Freeing the health care industry could generate an economic boom.
Health care accounts for a large part of national economic activity. According to the Canadian Institute for Health Information (CIHI), Canadians spent nearly $ 200-billion on healthcare in 2010, equal to about 12% of GDP. For comparison, data from the Canadian Association of Petroleum Producers indicates that in the same year the value of producers' sales in the Canadian oil industry was about $ 100 billion, or slightly more than 6% of GDP. Industry Canada data show that the auto industry sales of nearly $ 70-billion, or slightly more than 4% of GDP had.
Health care also provides a job creation machine. According to CIHI data, in 2010 the health care industry directly employed 673,000 as regulated health professionals. This is not even new jobs in support functions and management. Industry Canada estimates that another 29,000 people directly employed in the biopharmaceutical industry and 26,000 people in the medical device industry. By comparison, according to figures from Industry Canada, the oil and gas industry directly employed over the 230,000 and the auto industry directly employed 109,000 people in 2010.
Despite its already large share of the economy, the healthcare industry still has much potential for growth. The evidence strongly suggests that the current market demand for care exceeds the current market supply of health care in Canada. Long waiting times for access to necessary medical goods and services are commonplace, a shortage of medical professionals, innovative technologies and medicines are known, and future demand for healthcare is expected to increase as the population ages. But the supply of medical goods and services, and therefore economic growth in the industry is artificially constrained by the limited public resources and policy barriers to private sector financing and delivery.
If the government allowed private investment would flow into the health care, creating new capacity and expansion and modernization of our stock of medical facilities and equipment. New capacity, the demand for health workers, potentially creating thousands of additional high-paying jobs. New economic opportunities in health care in combination with a solid intellectual property protection would encourage home-grown research and development of innovative medical technologies, as an extension of export quality. Canada could even become a leader in the global market for health care, possibly attracting an influx of high-end medical tourism from other countries, which would effectively subsidize the domestic costs of health care for Canadians.

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