Authored by Vincent Geloso by way of the American Institute for Financial Analysis (AIER),
Final month, a video was trending on social media displaying a Canadian girl explaining that she had a 13-month await a magnetic resonance imaging (MRI) take a look at to examine for a mind tumor.
Canada healthcare is horrifying
“Immediately on how f*cked is Canadian healthcare: I want an MRI to see if I’ve a f*cking mind tumor. Go forward guess when it’s? Go forward, guess. It is in 2026”
“My MRI to see if I’ve a mind tumor is in 2026. It is March 2025 proper now”
“Should you… pic.twitter.com/fX1S0MD9EP
— Wall Avenue Apes (@WallStreetApes) March 23, 2025
On X, previously often known as Twitter, neighborhood notes popped as much as say that the video was deceptive. “Precedence is set by physicians, not the province,” wrote one commenter. One other famous that wait instances did differ by province.
None of this, nevertheless, detracts from the core truths:
Canada’s publicly offered well being care system truly requires rationing with the intention to include prices. As a result of companies are supplied at no financial value, demand exceeds the obtainable provide of docs, gear, and amenities. If the completely different provinces (which function most well being care companies) wished to fulfill the full demand, every must increase taxes considerably to fund companies. To maintain expenditures down (managing the imbalance from public provision) and thus taxes as properly, the system depends on rationing by wait instances reasonably than costs.
The rationing retains many sufferers away from care amenities or encourages them to keep away from dealing with minor however however problematic illnesses. These prices are usually not seen in taxes paid for well being care, however they’re true prices that matter to individuals.
All this may occasionally sound like an economist forcing the whole lot into the “econ field,” however the level has additionally been acknowledged by key architects of public well being care programs themselves. Claude Castonguay, who served as Quebec’s Minister of Well being throughout the enlargement of publicly offered care, conceded as a lot in his self-laudatory autobiography. The fact, he explains, is that eliminating rationing would suggest considerably increased prices—prices that politicians are typically unwilling to justify by the required tax will increase. A number of authorities reviews additionally take this as an inseparable characteristic of public provision—though they don’t say it as candidly as I’m saying it right here.
As an example the magnitude of rationing (and the development), one can study the evolution of the median variety of weeks between referral by a normal practitioner and receipt of remedy from 1993 to 2024. In most provinces (besides one), the median wait time in 1993 was lower than 12 weeks. Immediately, all provinces are shut or exceed 30 weeks. In two provinces, New Brunswick and Prince Edward Island, the median wait instances exceed 69 weeks. For some procedures, similar to neurosurgery, the wait time (for all provinces) exceeds 46 weeks.
Estimating the total value of well being care rationing is much from easy. The central problem lies in balancing information reliability with the breadth of situations thought of. Whereas some procedures and illnesses are properly documented, they signify solely a subset of these topic to rationing. For a lot of different situations, information high quality is restricted or inconsistent, making complete evaluation troublesome. Because of this, most empirical research focus narrowly on areas the place measurement is extra strong, leaving a lot of the full value unaccounted for.
In 2008, the Canadian Medical Affiliation (CMA) launched a research estimating the financial value of wait instances for 4 main procedures: complete joint substitute, cataract surgical procedure, coronary artery bypass graft (CABG), and MRI scans. For the 12 months 2007, the CMA estimated that the price of ready amounted to $14.8 billion (CAD). Relative to the scale of the Canadian economic system on the time, this represented roughly 1.3 p.c of GDP. That research didn’t embody, as one former president of the CMA famous, $4.4 billion in foregone authorities revenues ensuing from decreased financial exercise. It additionally doesn’t embody the value of ready instances for brand new medicines.
These procedures don’t seize the total scope of delays within the system and only some procedures—and the evaluation centered solely on an arbitrary definition of “extreme” wait instances. In 2013, the Convention Board of Canada discovered that including an additional two extra illnesses boosted the fee from $14.8 billion to $20.1 billion.
One other research used the same technique, however thought of the fee when it comes to misplaced wages and leisure. It arrived at a determine, for 2023, of $10.6 billion or $8,730 per affected person ready.
One research tried to estimate the price of rationing when it comes to lives misplaced.
This will appear callous, however lives misplaced means misplaced productiveness—a strategy to approximate the price of wait instances. One research discovered that one further week of delay within the interval between assembly with a GP and a surgical process elevated demise charges for feminine sufferers by 3 per 100,000 inhabitants. On condition that the lack of a life is estimated at $6.5 million (CAD), this isn’t a negligible social value when it comes to mortality.
And all of this for what? One may argue that these wait instances include excellent care as soon as obtained. That isn’t true both.
Adjusting for the age of inhabitants, Canada ranks (out of 30):
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#28 in docs
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#24 in care beds
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#25 in MRI items
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#26 in CT scanners
In a single comparative research inspecting care outcomes—similar to most cancers remedy, affected person security, and procedural success—“Canada carried out properly on 5 indicators of medical high quality, however its outcomes on the remaining six have been rated as both common or poor.” That is regardless of, after once more adjusting for inhabitants age construction, Canada rating as the best spender amongst a bunch of 30 comparable international locations. The fact is that, no matter nuances one needs to introduce—whether or not in good religion, pedantically, or just to troll—the core message of the viral video stays correct: Canadian well being care works properly for many who can afford to attend. To which I would add: wait very lengthy.
