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For the Good of the Patients: Financial Incentives to Improve Stability in the Canadian Health Care System

Research Report by Grant Reuber, Finn Poschmann

This article by Grant L. Reuber and Finn Poschmann analyzes the costs of public health care in Canada and the means of reform. The authors believe incorporating direct financial incentives into the system would “temper growth in demand for health services and place market pressure on providers to improve their efficiency and reduce costs” while still respecting the Canada Health Act. Reuber and Poschmann believe the best way of operationalizing the aforementioned financial incentives is through a provincial tax credit which would be tied to usage of the health care system. This would enable the federal government to use an existing structure (the tax system) rather than create a new one, which the authors argue is risky and costly. They also believe this type of reform might best find public support.

Reuber and Poschmann underline the fact that the point of reform is not simply to inject additional capital into the health care system. If that were so, then simply raising taxes would do the trick. Rather, the authors contend, the point is to invest patients with a financial interest that will in turn create pressure on health care providers to better manage their services.

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Policy Publication Details

Author(s):	Grant Reuber; Finn Poschmann;
Publisher:	C.D. Howe Institute [ Visit Website ]
Year Published:	2002;	Publisher Type:	Research Institute
Publicly Available:	Yes	Research Focus:	National;
Registration Required:	No	Language:	English
Payment Required:	No	Publication Format:	Adobe PDF

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Subjects / Categories:

Policy Articles / Fiscal & Budgetary / Reform
Policy Articles / Fiscal & Budgetary / Tax Policy
Policy Articles / Health Care / Funding
Policy Articles / Health Care / Reform
Policy Articles / Fiscal & Budgetary
Policy Articles / Health Care
Policy Articles / Fiscal & Budgetary / Reform / 2002
Policy Articles / Fiscal & Budgetary / Tax Policy / 2002
Policy Articles / Health Care / Funding / 2002
Policy Articles / Health Care / Reform / 2002

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Keywords / Tags:

tax; reform; health; health care; finances; financial incentives; tax credit; public support; providers; management;