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Innovation Means Choice for Health Care

Author: Tanis Fiss 2006/04/26
Recently, Canada's Health Minister Tony Clement said the federal government was open to "innovation" when it comes to Canada's health care system. However, any innovation would have to be within the parameters of the Canada Health Act (CHA). Regrettably, the CHA prohibits the delivery of private health care services within Canada. But don't think that means there is no room for private health care facilities in Canada. In fact, there are several jurisdictions where they operate unabated.

Last year, the Supreme Court of Canada in Chaoulli v. Quebec struck down a Quebec law banning private medicine and health insurance. The court held that suffering - and dying - while waiting for government-managed medical care violates the right to "life, liberty and security of the person" as spelled out by the Quebec Charter of Human Rights and Freedoms. To date, this ruling only applies to Quebec, which has more private health facilities than any other province.

Quebec isn't the only jurisdiction within Canada that is able to operate fee-for-service health facilities. Indian reservations are another place that permit private health care.

How is this so The Indian Act applies to Indian reservations and to those status Indians who choose to live on reservations. What is startling for most Canadians to learn is that the Indian Act exempts Indian reserves from several pieces of federal legislation. Two laws that apply throughout Canada, but not to Indian reservations are the Canada Health Act and Charter of Rights and Freedoms. Moreover, provincial legislation and municipal bi-laws do not apply to Indian reserves.

It is precisely these exemptions that are making it possible for communities like the Muskeg Lake Cree Indian Band of Saskatchewan and the Siksika Indian Band of Alberta, to begin the process of operating fee-for-service private health clinics.

If Quebec and Indian bands are permitted to operate fee-for-service health clinics, then Ottawa should give other Canadian provinces and entrepreneurs the same opportunity. One way to signal such a change is to amend the CHA by replacing the principal of public administration with the principles of choice, sustainability, quality and accountability. The government will, of course, continue to provide support for core medicare services, but also grant access to private providers to deliver health care.

The amendment would increase the role of the private sector. Successes involving the private sector in the delivery of health-care can be seen in countries like, Germany, Australia, Sweden, Singapore and Britain.

Ottawa has much to lean from these countries, Quebec and Indian bands within Canada. It is immoral that Canadians have choice to spend their money on cigarettes, alcohol and gambling, yet are not given the choice to spend their after-tax income on health care for themselves or a loved one. There is nothing wrong in giving Canadians the choice of spending their own money to get better health care and more of it. It is wrong however, for governments to force people to wait in line for basic health care.

Stifling competition and re-enforcing the status quo that is clearly not working is anything but "innovation." Allowing greater competition and a parallel, private system to co-exist along side the public system - as is done throughout the world - is key to improving Canada's health care system.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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