Ontario Turns to Rationing to Combat Rising Costs in their Health Care System

Posted by PITHOCRATES - January 28th, 2012

Week in Review

When you go to a national health system you give up on market forces.  There is no competition to keep prices competitive and affordable.  Because there is a single payer.  The government.  That pays for health care with taxes.  Which are finite.  And as health care costs rise they consume more of these finite taxes.  Until they reach a point that either that finite amount of taxes must be increased.  Or you ration health care services (see Ontario to cut health services covered by medicare by the The Canadian Press posted 1/25/2012 on CBC News).

Ontario will reduce the number of health services covered by medicare as the Liberal government looks to cut costs and trim a $16-billion deficit.

Health Minister Deb Matthews says the government is reviewing all health services to see if evidence shows they improve patient outcomes, and if not, they could be delisted from OHIP…

Matthews will outline a plan next week with several initiatives that she says will both improve patient care and address Ontario’s fiscal reality.

Of course these are mutually exclusive goals.  You cannot improve care by providing less care.  What you get instead is rationing.  Less care for the same level of taxes.  To offset the increase of health care costs.  Caused by the exclusion of market forces from a national health care system.

The inevitable decline of health care typical in all nationally provided systems.



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