Canada Hospital Market Analysis

Canada Hospital Market Executive Summary

The Canada Hospital Market is at around $439.96 Bn in 2023 and is projected to reach $734.69 Bn in 2030, exhibiting a CAGR of 7.6% during the forecast period.

Hospitals are essential pillars of our healthcare system. They provide a wide range of services to keep us healthy and cared for in times of illness or injury. Hospital services are delivered by a multidisciplinary team of healthcare professionals, including doctors, nurses, technicians, and support staff, all working together to diagnose, treat, and support patients on their journey to recovery. Hospitals invest in advanced medical technologies and equipment to meet the healthcare requirements of an aging population. This includes state-of-the-art diagnostic tools, surgical equipment, and telemedicine solutions, which contribute to hospital revenue growth. Overall, hospital services are pivotal in maintaining and promoting the health and well-being of individuals and communities by delivering comprehensive medical care and addressing a variety of healthcare needs.

The private sector hospitals, driven by competition and innovation, offer the latest medical technologies and personalized care. Patients often choose these institutions for their shorter wait times, luxurious amenities, and access to renowned specialists. While it comes with a price tag. On the other hand, public sector hospitals uphold the principle of healthcare as a fundamental right. They serve as safety nets for vulnerable and underserved populations, offering comprehensive healthcare services and research regardless of a patient’s financial means.

There were 7000 patients per 100,000 people hospitalized in Canada in 2022-23. The rate of hospitalization is increasing gradually. The market therefore is driven by significant factors like the rise in geriatric population, technological advancements, and government funding. However, the growing popularity of home care services, accessibility in rural areas, and regulatory issues restrict the growth of the market.

Hospitals known for their comprehensive medical services include Hamilton Health Sciences and the Ottawa Hospital. Vancouver Coastal Health, Alberta Health Services, and Trillium Health Partners are significant contributors.

Market Dynamics

Market Growth Drivers

Increase in Geriatric Population and In-patient Admissions: Canada's aging population is driving up demand for hospital services. The geriatric population accounts for 20% of the total population. The incidence of chronic diseases like cancer, heart disease, diabetes, and stroke is higher among the elderly, leading to more hospital admissions.

Technological Advancements: Technological advancements are driving significant growth in the Canadian hospital supplies market. Hospitals are increasingly adopting advanced patient examination devices, such as diagnostic imaging equipment and patient monitoring systems, to improve the quality and efficiency of care. Advancements in sterilization technology, including automated disinfection systems, are also being embraced by Canadian hospitals to maintain high standards of infection control.

Government Funding: The federal government provides transfer payments to provinces and territories through the Canada Health Transfer (CHT) to support the costs of publicly funded health services, including hospital care. To receive the full CHT allocation, provinces and territories must comply with the criteria and conditions set out in the Canada Health Act.

Market Restraints

Growing Popularity of Home Care Services: The increasing preference for home healthcare services is restraining the growth of the hospital services market in Canada. Home healthcare allows patients to receive care in the comfort of their own homes, reducing the burden on hospitals.

Access Challenges in Rural Areas: In some rural and remote areas of Canada, access to hospital services may be limited due to a shortage of healthcare infrastructure and professionals. This can act as a restraint to the growth of the hospital services market in these regions.

Regulatory Issues: Regulatory challenges related to the provision of hospital services in Canada can act as a restraint on the growth of the market. Compliance with the Canada Health Act's requirements is necessary for provinces and territories to be eligible for full federal cash transfers to promote health.

Regulatory Landscape and Reimbursement Scenario

Health Canada plays a role in setting national standards and guidelines for healthcare services. It is responsible for regulating drugs, medical devices, and other health-related products used in hospitals. Each province and territory have its own Ministry of Health or equivalent that oversees the licensing, regulation, and operation of hospitals within their jurisdiction. Canadian Patient Safety Institute (CPSI) is a national organization that works to improve patient safety and quality of care in the Canadian healthcare system, including in hospitals.

The federal government provides transfer payments to provinces and territories through the Canada Health Transfer (CHT) to support the costs of publicly funded health services, including hospital care. Canada Health Act (CHA) Reimbursement Policy aims to work collaboratively with provinces and territories to eliminate patient charges for medically necessary services. Under this policy, if a province or territory takes action to eliminate patient charges, they can receive reimbursements for any previous mandatory CHT deductions made due to those charges.
Some provinces, like Ontario, have established reimbursement programs to cover the costs of hospital services received by residents while traveling outside of Canada.

Competitive Landscape

Key Players

Here are some of the major key players in the Canada Hospital Market:

• Vancouver Coastal Health
• Hamilton Health Sciences
• Alberta Health Services
• Lakeridge Health
• The Ottawa Hospital
• Trillium Health Partners
• University Health Network
• London Health Sciences Centre
• Sunnybrook Health Sciences Centre
• Queen Elizabeth II Health Sciences Centre