News Release

1997-44
July 7, 1997

Health Canada releases report on the Economic Burden of Illness in Canada

Ottawa - Health Canada yesterday released its report, Economic Burden of Illness in Canada, 1993, which provides information about the costs to society and individuals as a result of illness, injury and premature death.

The report was released at the opening of the 88th Annual Conference of the Canadian Public Health Association (CPHA) held this week-end in Halifax. The CPHA is a national, independent, voluntary association representing public health in Canada.

"This key document will provide valuable information to assist policy makers, health planners, researchers and other key individuals who have a responsibility to ensure health care dollars are well spent", said Minister Allan Rock. He also said, "I am pleased that the report is being released at the CPHA Conference and that it is being distributed through this valuable partnership between CPHA and my department."

The report, prepared by Health Canada's Laboratory Centre for Disease Control, provides a comprehensive overview of the distribution of the principal direct and indirect costs of illness in Canada in 1993. Information based on a variety of national (National Health Expenditures in Canada, National Population Health Survey), provincial and private sector data sources has been compiled and analyzed at the national level.

Illnesses with the highest total costs are cardiovascular, musculoskeletal, respiratory, nervous system and sense organ diseases, cancer and injuries.

Highlights of the report include:

• The total cost of illness in Canada for 1993 was an estimated $157 billion which is roughly equivalent to $5,450 per capita or 22% of the Gross Domestic Product (GDP).
• Direct costs such as hospitals and other institutions, physicians and other health professionals, drugs, research, capital, and other health expenditures accounted for $72 billion.
• Indirect costs, measured as the value of lost productivity resulting from long-term and short-term disability and premature death, accounted for $85 billion.
• Hospital care was the largest direct cost ($26 billion), while research was the smallest ($752 million).
• Lost productivity resulting from long-term disability (the largest indirect cost component) cost society $38.3 billion in 1993.
• Cardiovascular diseases ($19.7 billion), musculoskeletal diseases ($17.8 billion), injuries ($14.3 billion) and cancer ($13.1 billion) had the highest total costs in 1993.
• A portion of the cost of illness could be categorized by age and sex. The age group 65 and over accounted for almost one third (29.2%, $37.6 billion) of the costs classifiable by age group. The costs of illness that could be classified by sex were almost evenly distributed between males ($65.9 billion) and females ($62.7 billion). However, the distribution by age group and sex varied considerably by cost component.
• The report recommends continued refinement of cost-of-illness studies; the use of economic estimates of illness, in conjunction with other health indicators, when making health care decisions; and strengthening research, health promotion and disease prevention programs that target illnesses with the greatest "health" burden.

The report updates information provided in the Economic Burden of Illness in Canada, 1986, which was released in 1991. It will be available through the Canadian Public Health Association through an agreement with Health Canada. Copies may be obtained from the CPHA Health Resources Centre, Tel (613) 725-3769, FAX (613) 725-9826 for $5.95 plus handling/GST. The report will also be available free of charge on the Health Canada (LCDC) Website at /hpb/lcdc

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Sylvie Patry
Health Canada
(613) 957-2988

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