Counter intuitive perscription

Drug costs are sky-rocketing while in the public sector of health care hospital costs are declining and doctor costs remain stable.

Hospitals still make up the largest component of Canada's health-care spending but their share is steadily declining, says the group, created by the federal, provincial and territorial governments to monitor industry trends.

Hospitals are expected to account for 28 per cent, or $48.1 billion, of total health-care spending this year, down from 30.7 per cent in 1998 and 44.7 per cent in 1975.

Spending on both prescribed and non-prescribed drugs will account for 17.4 per cent of health-care spending, or $29.8 billion, the study predicts. That's up from 15 per cent a decade ago and 8.8 per cent in 1975.

The study says payments to physicians will account for about 13.4 per cent of total spending in 2008, or $23 billion. That share has remained relatively stable since 1999.

At 8.3 per cent, spending on drugs is expected to grow faster than spending on hospitals (5.8 per cent) or physicians (6.2) this year.

To be completely clear: The private sectors of Canadian healthcare are making up the lions share of surging health costs while the public sector costs are stable or declining - and the usual suspects still insist the solution is more private healthcare.