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1857_mossialos_intl_profiles_2015_v6 1857_mossialos_intl_profiles_2015_v6

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CANADA What is covered? Services: To qualify for federal financial contributions under the Canada Health Transfer, provincial and territorial insurance plans must provide first-dollar coverage of medically necessary physician, diagnostic, and hospital services (including inpatient prescription drugs) for all eligible residents. There is no nationally defined statutory benefits package; most public coverage decisions are made by provincial and territorial governments in conjunction with the medical profession. Provincial and territorial governments provide varying levels of additional benefits, such as outpatient prescription drugs, nonphysician mental health care, vision care, dental care, home health care, and hospice care. They also provide public health and prevention services (including immunizations) as part of their public programs. Cost-sharing and out-of-pocket spending: There is no cost-sharing for publicly insured physician, diagnostic, and hospital services. All prescription drugs provided in hospitals are covered publicly, with outpatient coverage varying by province or territory. Physicians are not allowed to charge patients prices above the negotiated fee schedule. In 2012, out-of-pocket payments represented about 14.2 percent of total health spending (Canadian Institute for Health Information, 2015a), going mainly toward prescription drugs (21%), nonhospital institutions (mainly long-term care homes) (22%), dental care (16%), vision care (9%), and over-the-counter medications (10%) (Canadian Institute for Health Information, 2015a). Safety net: Cost-sharing exemptions for noninsured services such as prescription drugs vary among provinces and territories, and there are no caps on out-of-pocket spending. For example, the prescription drug program in Ontario exempts low-income seniors and social assistance recipients from all cost-sharing except a CAD2.00 (USD1.60) copayment, which is often waived by pharmacies. Low income is defined as annual household income of less than CAD16,018 (about USD12,700) for single people and less than CAD24,175 (USD19,168) for couples. There are no caps on out-of-pocket spending. However, the federal Medical Expense Tax Credit supports tax credits for individuals whose medical expenses, for themselves or their dependents, are significant (above 3% of income). A disability tax credit and an attendant care expense deduction also provide relief to individuals (or their dependents) who have prolonged mental or physical impairments, and to those who incur expenses for care that is needed to allow them to work. How is the delivery system organized and financed? Primary care: In 2014, about half of all practicing physicians (2.24 per 1,000 population) were general practitioners, or GPs (1.14 per 1,000 population) and half were specialists (1.10 per 1,000 population) (Canadian Institute for Health Information, 2015b). Primary care physicians act largely as gatekeepers, and many provinces pay lower fees to specialists for nonreferred consultations. Most physicians are self-employed in private practices and paid fee-for-service, although there has been a movement toward group practice and alternative forms of payment, such as capitation. In 2013–2014, fee-for-service payments made up 45 percent of payments to GPs in Ontario, compared with 67 percent in Quebec and 84 percent in British Columbia (Canadian Institute for Health Information, 2015c). In 2014, 46 percent of GPs reported to work in a group practice, 19 percent in an interprofessional practice, and 15 percent in a solo practice (National Physician Survey, 2014). In some provinces, such as Ontario, some new primary care teams paid partly by capitation must require patients to register to receive those partial payments; otherwise, registration is not required. Clinical fee-forservice payments to primary care physicians in Canada averaged CAD249,154 (USD197,550) in 2013–2014 (Canadian Institute for Health Information, 2015c); these do not account for alternative payments and nonclinical payments. It has been estimated that the average payment, including alternative payments, for primary care physicians in Ontario is 21 percent higher than for fee-for-service alone (Henry et al., 2012). In several provinces, networks of GPs work together and share resources. For instance, Primary Care Networks in Alberta, My Health Teams in Manitoba, and Family Health Teams in Ontario support interdisciplinary health professionals (e.g., nurses, pharmacists, and dietitians). In Ontario, the minimum size of practice for physicians in alternative payment models (not fee-for-service) is three (Sweetman and Buckley, 2014). In Family Health 22 The Commonwealth Fund

CANADA Teams, the average practice size is approximately 10 physicians, and ranges from seven to 14 physicians in other models (Rudoler et al., 2015). In Ontario, team composition varies among practices, and interdisciplinary providers are generally salaried employees of the practice. Patients have free choice of primary care doctor, although in some areas choices are restricted owing to limited supply. Provincial and territorial ministries of health negotiate physician fee schedules (for primary and specialist care) with provincial and territorial medical associations. In some provinces, such as British Columbia and Ontario, payment incentives have been linked to performance, and also are used to encourage the provision of a number of services including, but not limited to, delivering “guideline-based” care for specified chronic conditions, offering preventive services, developing care plans for patients with complex needs, and registering complex or vulnerable patients. Outpatient specialist care: The majority of specialist care is provided in hospitals, although there is a trend toward providing services in private nonhospital facilities. Specialists are mostly self-employed and paid fee-forservice. Specialists in Canada received an average of CAD379,051 (USD300,545) annually in clinical fee-forservice payments in 2013–14 (Canadian Institute for Health Information, 2015c). In most provinces, specialists have the same fee schedule as primary care physicians. In 2014, 65 percent of specialists reported to work in a hospital, compared with 24 percent in a private office or clinic (National Physician Survey, 2014). Patients can choose, and have direct access to, a specialist, but it is common for GPs to refer patients to specialty care. Specialists who work in the public system are not permitted to receive payment from private patients for publicly insured services. There are few formal multispecialty clinics, although in some provinces, such as Ontario, there are informal, or virtual, networks of specialists that share patients and information (Stukel et al., 2013). Administrative mechanisms for paying primary care doctors and specialists: The majority of physicians and specialists bill provincial governments directly, although some are paid a salary by a hospital or facility. There are no direct payments from patients to physicians; there is no cost-sharing, although patients may be required to pay for services that are not medically necessary—for example, physician letters sent to employers when employees are ill. After-hours care: After-hours care is provided generally by physician-led (and mainly privately owned) walk-in clinics and hospital emergency rooms. In most provinces and regions, a free telephone service (“telehealth”) is available 24 hours a day for health advice from a registered nurse. Traditionally, primary care physicians were not required to provide after-hours care, although many of the government-enabled group practice arrangements have requirements or financial incentives for providing after-hours care to registered patients. For example, in Ontario, physicians practicing in non-fee-for-service models have to provide sessions during some evenings and weekends. In some models, this amounts to a single three-hour session per week per physician in the group, up to five sessions per week (MOHLTC, 2009). These physicians are paid a 30 percent bonus for primary care services provided during evenings, weekends, and holidays (MOHLTC, 2011). Manitoba has implemented QuickCare clinics, staffed by nurses and nurse practitioners, to meet health care needs after hours (Government of Manitoba, 2015). The 2012 Commonwealth Fund International Survey of Primary Care Doctors found that only 46 percent of physician practices in Canada had arrangements for patients to see a doctor or nurse after hours, with the highest rate in Ontario, at 67 percent (Health Council of Canada, 2013). The same survey found that only 30 percent of physicians received notification of hospital emergency department visits by their patients, and only about a quarter received a full report on specialist consultations. Hospitals: Hospitals are a mix of public and private, predominantly not-for-profit, organizations, often managed locally by regional authorities or hospital boards representing the community. In provinces with regional health authorities, many hospitals are publicly owned (Marchildon, 2013), whereas in other provinces, such as Ontario, they are predominantly private nonprofit corporations. There are no data on the number of private for-profit clinics (which are mostly diagnostic and surgical). In Ontario, as of May 2014, the government was providing International Profiles of Health Care Systems, 2015 23

CANADA<br />

Teams, the average practice size is approximately 10 physicians, and ranges from seven to 14 physicians in<br />

other models (Rudoler et al., 2015). In Ontario, team composition varies among practices, and interdisciplinary<br />

providers are generally salaried employees of the practice.<br />

Patients have free choice of primary care doctor, although in some areas choices are restricted owing to<br />

limited supply.<br />

Provincial and territorial ministries of health negotiate physician fee schedules (for primary and specialist care)<br />

with provincial and territorial medical associations. In some provinces, such as British Columbia and Ontario,<br />

payment incentives have been linked to performance, and also are used to encourage the provision of a<br />

number of services including, but not limited to, delivering “guideline-based” care for specified chronic<br />

conditions, offering preventive services, developing care plans for patients with complex needs, and registering<br />

complex or vulnerable patients.<br />

Outpatient specialist care: The majority of specialist care is provided in hospitals, although there is a trend<br />

toward providing services in private nonhospital facilities. Specialists are mostly self-employed and paid fee-forservice.<br />

Specialists in Canada received an average of CAD379,051 (USD300,545) annually in clinical fee-forservice<br />

payments in 2013–14 (Canadian Institute for Health Information, 2015c). In most provinces, specialists<br />

have the same fee schedule as primary care physicians. In 2014, 65 percent of specialists reported to work in<br />

a hospital, compared with 24 percent in a private office or clinic (National Physician Survey, 2014). Patients can<br />

choose, and have direct access to, a specialist, but it is common for GPs to refer patients to specialty care.<br />

Specialists who work in the public system are not permitted to receive payment from private patients for<br />

publicly insured services. There are few formal multispecialty clinics, although in some provinces, such as Ontario,<br />

there are informal, or virtual, networks of specialists that share patients and information (Stukel et al., 2013).<br />

Administrative mechanisms for paying primary care doctors and specialists: The majority of physicians and<br />

specialists bill provincial governments directly, although some are paid a salary by a hospital or facility. There<br />

are no direct payments from patients to physicians; there is no cost-sharing, although patients may be required<br />

to pay for services that are not medically necessary—for example, physician letters sent to employers when<br />

employees are ill.<br />

After-hours care: After-hours care is provided generally by physician-led (and mainly privately owned) walk-in<br />

clinics and hospital emergency rooms. In most provinces and regions, a free telephone service (“telehealth”)<br />

is available 24 hours a day for health advice from a registered nurse. Traditionally, primary care physicians were<br />

not required to provide after-hours care, although many of the government-enabled group practice arrangements<br />

have requirements or financial incentives for providing after-hours care to registered patients. For example, in<br />

Ontario, physicians practicing in non-fee-for-service models have to provide sessions during some evenings and<br />

weekends. In some models, this amounts to a single three-hour session per week per physician in the group, up<br />

to five sessions per week (MOHLTC, 2009). These physicians are paid a 30 percent bonus for primary care<br />

services provided during evenings, weekends, and holidays (MOHLTC, 2011). Manitoba has implemented<br />

QuickCare clinics, staffed by nurses and nurse practitioners, to meet health care needs after hours (Government<br />

of Manitoba, 2015).<br />

The 2012 Commonwealth Fund International Survey of Primary Care Doctors found that only 46 percent of<br />

physician practices in Canada had arrangements for patients to see a doctor or nurse after hours, with the<br />

highest rate in Ontario, at 67 percent (Health Council of Canada, 2013). The same survey found that only<br />

30 percent of physicians received notification of hospital emergency department visits by their patients, and<br />

only about a quarter received a full report on specialist consultations.<br />

Hospitals: Hospitals are a mix of public and private, predominantly not-for-profit, organizations, often managed<br />

locally by regional authorities or hospital boards representing the community. In provinces with regional health<br />

authorities, many hospitals are publicly owned (Marchildon, 2013), whereas in other provinces, such as Ontario,<br />

they are predominantly private nonprofit corporations. There are no data on the number of private for-profit<br />

clinics (which are mostly diagnostic and surgical). In Ontario, as of May 2014, the government was providing<br />

International Profiles of Health Care Systems, 2015 23

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