Introduction
The spread of COVID-19 had a significant impact on the Canadian population and its government. The pandemic had unprecedented economic impacts on the lives of Canadians. The government adopted potential strategies to respond to the devastating consequences of the pandemic. Governments had to weigh the trade-offs generated by potential strategies that could have helped maximize positive outcomes. The Canadian government’s top priority was to promote the health and safety of its citizens. COVID-19 led to an upsurge in healthcare costs in Canada, with the pandemic becoming a new cost driver in the country’s healthcare sector.
Causes of Upsurge of Healthcare Costs in Canada during the COVID-19 Crisis
Direct Costs
The immediate demand for healthcare services in Canada during COVID-19 needed a scale-up of health systems to respond to the pandemic. The direct costs incurred to deal with the challenges of the COVID-19 pandemic included expenses on personal protective equipment, medical supplies, testing, and pharmaceuticals (McMahon, et al., 2020). The Canadian government spent over 50% of the total health spending in 2021 on hospitals, drugs, and physicians (The Conference Board of Canada, 2020). Organization of resources and system adaptation was a top priority for Canada during the pandemic due to the country’s ill-equipped healthcare system. There was an increased demand cost to meet the shortages of PPEs, ventilators, intensive care unit beds, and other resources (The Conference Board of Canada, 2020). The government, through the health sector, invested in virtual care to meet the rising patient needs and reduce the disease transmission risk. The COVID-19 pandemic’s direct cost estimates in Canada were associated with a wide range of spending initiatives.
Indirect Costs
The COVID-19 crisis exerted indirect cost pressures on the Canadian healthcare system. The pandemic resulted in increased health complications such as cardiac, renal, respiratory, and neurologic which had significant cost implications. The COVID-19 pandemic disrupted the delivery of healthcare services in Canada with many displaced surgeries. Approximately, Canada canceled or postponed 394,572 elective surgeries during the first two months of hospital disruption due to the COVID-19 crisis (The Conference Board of Canada, 2020). Canceling and postponing surgeries was an opportunity cost COVID-19 response which led to reduced fees for service physician services and losses on net savings. The Canadian government had to redirect healthcare funds toward the COVID-19 response. As a result, clearing the backlog of displaced surgeries put additional cost pressures on the Canadian healthcare sector.
Effects of Upsurge of Healthcare Cost in Canada during the COVID-19 Crisis
The increased healthcare spending during COVID-19 resulted in budget deficits for both the provincial and federal governments in Canada. The healthcare system incurred additional healthcare spending to address the cumulative backlog of surgeries postponed due to the COVID-19 breakout. Diversion of resources towards COVID-19 response worsened social determinants of health resulting in increased demand for healthcare services. The stress brought by the pandemic due to the closure of schools, public health services, and isolation had a negative impact on Canadians. The country reported a significant number of deaths either directly or indirectly connected to the pandemic. In September 2020, the number of deaths not related to COVID-19 was 5% greater than the annual expected mortality (Canadian Medical Association, 2021). Lack of frequent use of health care services among the aging population resulted in chronic disease management challenges leading to increased deaths. The substitution of in-person care with virtual visits for chronic diseases was not effective.
Shifting of health funds towards the COVID-19 response neglected other health concerns of the Canadians resulting in an overall rise in healthcare spending for the government. Since the beginning of the COVID-19 pandemic, Canada started experiencing an opioid crisis. Between the onset of the pandemic and June 2021, about 20% to 24% of Canadians reported high levels of anxiety (Canadian Medical Association, 2021). The opioid crisis resulting from pandemic-related stress led to huge negative effects on Canadians. Less access to public health services meant to deliver harm reduction services led to unintended consequences for the people who use substances. An increase in drug toxicity became a major cause of death during the COVID-19 pandemic in Canada.
The Future of Canada’s Healthcare sector post-COVID-19
The COVID-19 pandemic acted as a powerful catalyst for change in the Canadian healthcare system. The pandemic re-exposed the need for increased physician mobility to improve access to care, a long-standing advocacy in the country (Tang & Zhou, 2020). The COVID-19 crisis led to the establishment of policies that enhanced the alignment of physician care with patients’ needs. Post the pandemic, the Canadian healthcare system expects efforts towards the establishment of national licensure as a strategy for sustainable access to healthcare in the country.
The COVID-19 crisis unveiled virtual technology meant to deliver timely access to care among Canadians. The pandemic response through the rapid adoption of virtual care was a demonstration of the widespread uptake of virtual care for Canada in the future (Tang & Zhou, 2020). Through virtual care adoption, the Canadian healthcare system will promote access to care in remote and rural areas. As a result, the country’s supply of healthcare services will be increased by offering virtual care through flexible technologies such as videoconferencing and telephone.
The COVID-19 crisis has had a huge effect on the Canadian labor market, specifically for the medics. The pandemic shifted the sick-at-work policies and culture in the Canadian healthcare sector with the adoption of self-isolate guidelines to support public protection (Tang & Zhou, 2020). The provincial governments in Canada have started supporting progressive public policies and are specifically changing the labor laws to ensure healthcare workers can take sick leave.
Conclusion
The COVID-19 pandemic had a substantial cost impact on the Canadian healthcare system. The federal and provincial governments experienced both direct and indirect costs to control the spread of the pandemic and save lives. Despite shortages in healthcare resources in the country, the government was forced to deploy most of these resources to the COVID-19 response while postponing and haltering other healthcare services. These measures had huge indirect costs, including an increase in chronic disease-related deaths and an opioid crisis, among others. However, the crisis shaped the future of the Canadian healthcare system through the promotion of virtual care and support of progressive labor policies, which are beneficial in the long run.
References
Canadian Medical Association. (2021). A Struggling system: Understanding the health care impacts of the pandemic. Web.
McMahon, M., Nadigel, J., Thompson, E., & Glazier, R. H. (2020). Informing Canada’s health system response to COVID-19: Priorities for health services and policy research. Healthcare Policy, 16(1), 112. Web.
Tang, B., & Zhou, L. L. (September, 2020). COVID-19: An accidental catalyst for change in the Canadian health care system. BCMJ, 62(7), 242-243.
The Conference Board of Canada. (2020). Health care cost drivers in Canada: Pre and Post COVID-19. Web.