Canada to spend $433 billion on health care in 2026 as pressure on doctors and hospitals continues

OTTAWA — A new official report says total health-care spending in Canada is expected to reach $433 billion in 2026, an increase of nearly $20 billion over last year, as pressure continues on hospitals, doctors and essential medical services.

According to the Canadian Institute for Health Information (CIHI), health spending will rise 4.8% this year, averaging about $10,398 per person in the country.

The increase comes even though pressures linked to inflation and population growth have eased, which suggests a larger share of resources is going toward expanding the health system's capacity and improving services.

However, the report raises questions about how far these investments are translating into shorter wait times and access to a family doctor.

Health spending approaches 13% of the Canadian economy

CIHI expects health spending to account for about 12.8% of Canada's gross domestic product in 2026, compared with 12.7% in 2025.

The health sector is therefore continuing to grow faster than the Canadian economy, which is expected to record nominal growth of 4.1%.

The spending estimates include money provided by federal, provincial and local governments, as well as amounts paid by households and private insurers.

Public funds are expected to make up about 71.4% of total spending, compared with 28.6% for the private sector.

The average of $10,398 per person does not mean each person receives services of that value. It is the result of dividing total health spending by the population.

Where do the billions go?

Hospitals account for the largest share of Canadian health spending, followed by physician services and drugs.

• Hospitals: 25.6% of total spending in 2026
• Physician services: 14.1%
• Drugs: 12.7%

The report projects that hospital spending will rise 5.1%, while spending on physician services will increase by a larger 8.3%.

Spending on drugs is expected to rise 3.7%.

These increases are linked to several factors, including the need for additional medical services, labour costs and the use of high-priced specialty drugs.

Five billion dollars more than inflation and population pressures explain

One of the report's main findings is that government health spending is expected to rise by more than $5 billion above what can be explained by inflation, population changes and aging.

CIHI said this increase may reflect new investments in hiring workers, expanding capacity and developing medical technology.

Lacey Langlois, CIHI's director of health expenditure, said the important question is not only that spending keeps rising, but that the factors behind the increase are changing.

She pointed to the importance of using data to determine whether the new investments are actually improving the services provided to patients.

Ontario and Quebec have the lowest per-person spending

The report showed marked differences among Canadian provinces in per-person health spending.

Nova Scotia led the provinces at an average of $12,777 per person, followed by Newfoundland and Labrador at $12,710 and Prince Edward Island at $12,617.

By contrast, Ontario recorded the lowest average among the provinces at $9,838, followed by Quebec at $9,895 and Alberta at $10,426.

CIHI said these differences are influenced by residents' ages, population density and the cost of delivering services in rural and remote areas, and do not necessarily mean the province that spends the most provides better care.

Doctor shortages continue to strain the health system

Despite the increase in funding, primary health care still faces major challenges.

CIHI noted that 17% of Canadian adults reported in 2023 that they did not have a regular health-care provider.

Another 74% said they were unable to get a medical appointment the same day or the next day.

A more recent survey of primary care physicians found that 22% of them plan to stop providing regular care to patients within the next three years.

These indicators show the importance of addressing shortages of medical staff, rather than relying only on larger budgets.

Will health services improve in 2027?

CIHI says new investments in workers, equipment, infrastructure and artificial intelligence may help increase the health system's capacity and improve its efficiency.

But it said that depends on how the money is used and how successfully governments turn it into actual services.

It also warned that the costs of technology, equipment and imported drugs could be affected by trade tensions and exchange-rate fluctuations.

As Canada heads toward a new record in health spending, the main challenge remains ensuring that these billions translate into timely access to care for residents.