The healthcare systems of Canada and the United States have long been the subject of debate and comparison. While Canada spends less on healthcare as a percentage of GDP and has a lower healthcare inflation rate, the United States has a private healthcare market with high costs and administrative inefficiencies. This essay will discuss the reasons behind Canada’s ‘better’ performance, whether the US system is wasteful, and the potential for the US to replicate Canada’s healthcare system.
Canada spends a lower percentage of its GDP on healthcare than the United States, and its healthcare inflation rate has been consistently lower since the 1990s. The publicly-funded nature of the Canadian healthcare system is the primary reason behind its ‘better’ performance (Phelps, 2018). The Canadian government negotiates prices with healthcare providers and manufacturers, which keeps the cost of healthcare services low (Schneider et al., 2020). In contrast, the United States has a private healthcare service market characterized by high costs, administrative inefficiencies, and a lack of universal access (CIHI, 2021). It is challenging to determine whether the Canadian healthcare system is better than the US because both have their strengths and weaknesses.
The United States could duplicate Canada’s ‘better’ performance by transitioning to a publicly-funded healthcare system that provides universal access to medical services and adopting a preventative healthcare model that promotes healthy living and reduces the incidence of chronic diseases. However, implementing such changes would be challenging due to the high cost of healthcare services in the United States and the influence of private healthcare providers on the healthcare industry (Phelps, 2018). It is worth noting that despite spending a lower percentage of GDP on healthcare, Canada achieves better health outcomes than the United States. This suggests that the Canadian healthcare system’s ‘better’ performance is attributed to its lower costs and overall system design and organization.
In conclusion, the publicly-funded nature of the Canadian healthcare system and its ability to negotiate prices with providers and manufacturers are the primary reasons for its ‘better’ performance. While it is challenging to determine whether the Canadian system is better than the US, the United States could achieve similar results by transitioning to a publicly-funded system that provides universal access and adopting a preventative healthcare model. Despite spending less on healthcare, Canada has better health outcomes than the US, suggesting that its lower costs and system design and organization are the keys to its success.
References
Canadian Institute for Health Information. (2021). Health spending. Web.
Phelps C. E. (2018). Health Economics 6th Edition. Pearson Publishing.
Schneider, E. C., Sarnak, D. O., Squires, D., Shah, A., & Doty, M. M. (2020). Mirror, mirror 2020: Reflecting poorly: Health care in the US compared to other high-income countries. The Commonwealth Fund. Web.