It is important to understand that, because of an aging population, the provinces will feel pressure on their health care spending in the coming decades. Spending will outpace economic growth. With that in mind, we can strive for health care innovation to get the best value for our money.
The fact remains that health care spending will increase at a faster rate than the economic growth because of demographic pressures. If the federal government keeps its health care transfers at the same level as the economic growth, federal health care transfers to the provinces will have to drop significantly over time.