Thank you very much for that question.
You've raised an important point. It is the case that reports on adverse drug reactions are essential pieces of information for drug regulators. It's essential that Health Canada receive that information, that it be high-quality information, that it be clear, and that it be comprehensive so we can ensure that we have the appropriate knowledge to take action.
We are all aware that drugs are powerful chemical and biological substances. They can have both positive and negative effects, but also unwanted side effects, so the issue of adverse drug reactions is an important one. Currently, only drug companies and sponsors of clinical trials must report serious adverse reactions to Health Canada. That obviously is important information for us to have because it allows us to take action with the aim of preventing such effects from recurring.
We know that a significant number of Canadians who are admitted to hospital each year suffer from very serious adverse drug reactions. However, reports of these drug reactions are not always shared with Health Canada. As the regulator, that seems like a gap we need to close, which is what we want to do with Vanessa's law.
Indeed, while adverse drug reaction reporting to Health Canada has been on the rise over the last five years, it's still estimated that less than 10% of all incidents are reported. So you can see the need for closing this gap. This under-reporting of critical drug safety information is a very serious concern. It limits our ability to identify potential safety issues at an early stage and then, of course, to take quick action to prevent further harm to patients.
Of course, we see hospitals as being the unique entities and institutions to identify and report these incidents. Although most drugs are prescribed by family doctors and used outside of a hospital setting, the truth is that when there's a really serious interaction, people usually go to the hospital or take their children to the hospital. It makes sense to us that this would be where we would focus our efforts.
We already know that adverse drug reactions are under-reported. Vanessa's law would give us the tools needed to improve the collection of this information. Although some tools, such as electronic reporting, have already been developed to encourage health care institutions to provide this information, it's still not enough. This is why we've introduced these measures to require certain health care institutions to report serious adverse drug reactions and serious medical incidents directly to Health Canada.
Better reporting by health care institutions will ultimately lead to a reduction in preventable harm to patients. We know that many emergency room visits are related to serious adverse drug reactions and that many of these are actually preventable. If we have the information and the ability to take action to prevent harms from occurring in the first place, not only will this lead to the safer use of drugs, but it will also free up valuable hospital resources.
We understand that all of us rely on the health care system. This is why we've increased transfers to health care. We also recognize, and we are acutely aware, how busy health care institutions are. We believe that Vanessa's law does not impose any unnecessary burdens on our health care system. I mention this because it was one of the issues raised with me by the provinces and territories.
I have to tell you that the provinces and territories are very supportive of this legislation, very supportive. They are looking forward to working with us on the implementation, more so on an institutional basis, to make sure hospitals understand what their requirements and obligations are. We look forward to working on that.
We will obviously be developing the regulations in consultation with the provinces and territories. Those will then set out exactly for them what information they are required to report, which health care institutions will have to report, and how that information will be reported and in what timeframe. We've made a lot of progress with them already to date.