Today’s op-ed by Scott Stinson in the National Post reflects the growing frustration among Canadians and a variety of thought leaders and advocacy groups that little is being done by Ottawa or Queen’s Park to examine potential models of fundamental health care reform.

As Stinson aptly notes, health care gained some traction in the last federal election, but only to the extent that current levels of transfer payments to the provinces would be maintained at 6% for the foreseeable future.  A new report this week from the Canadian Medical Association (CMA) is another wake up call for government leaders (whom are well aware of the health care sustainability challenge) to step forward in a bold fashion and convene a variety of stakeholders to determine how best to sustain a system we are accustomed to and make it more efficient.

For Ontario, this higher level of efficiency and value for public dollars invested becomes increasingly important as our population increases by 28% by 2030.  Our senior population is projected to represent one in five of all Ontarians by this time.  With 42 cents of every program dollar already going towards health care, what level of “distress” is the right time to roll up our sleeves and truly address this dilemma?

No doubt, health care reform is a highly sensitive topic and Canadians across the political spectrum are deeply passionate about it.  Nevertheless, there will come a point at which it is no longer simply easier to ignore the matter or delay the point of crisis with additional funding – at the expense of other public spending priorities.  Think transportation gridlock for instance?  Is it so difficult to put aside our ideologies and pause for a constructive conversation about the health care system?  A dialogue that is open to all ideas and one that is built on a spirit of cooperation?  Whether or not there is enough of a public appetite for health care reform to become a top campaign issue in the upcoming provincial election, November’s Ontario Economic Summit will tackle it head-on.  We look forward to facilitating a genuine debate and strategy session among a cross-section of economic leaders who will seek to uncover dynamic solutions to this very complex challenge.

Photo source: Flickr (nihilenz)

While the debate rages on south of the border about the $938 billion health care reform bill signed into law today by President Obama, Ontario companies may wish to consider how this monumental change to U.S. health care policy could benefit their own business activity in the United States market.

The White House notes that affordable health coverage will now be extended to 31 million additional Americans who previously had to go without.  The bill also requires availability of coverage for those with pre-existing conditions.  If the U.S. Senate approves House changes to the bill that would take effect in 2014, individuals will be required to purchase health coverage or face fines.

As Diane Francis argues in her commentary today in The National Post, the changes do not solely respond to a moral imperative, but also address rising and unsustainable health care costs in the U.S. – affecting overall economic conditions in the world’s largest consumer market.  As Francis simply characterizes it, “That’s good news for Canada and others who rely somewhat on a successful United States.”   The U.S. consumer will no longer be as concerned about a big “what if” scenario, prompting individuals to stockpile money to pay for a serious illness down the road.  That’s money that otherwise would be invested back into the economy.  Of course, this argument assumes this is indeed happening with such regularity as to affect overall consumer spending levels.  Either way, the decline in U.S. household consumption since 2008 is unmistakable and anything to improve that situation is a positive thing.

Perhaps the most direct area of opportunity for Ontario arising from U.S. health care reform lies in the increased opportunities for Ontario’s exporting life sciences and medical devices sector.  From advanced biophotonics to diagnostic equipment and surgical tools, Ontario is already competing on the world stage with a solid reputation for innovative product development and expertise.  According to the Ministry of Economic Development and Trade, our medical devices industry already boasts over 600 companies with 22,000 employees and revenues of $4 billion annually.  The expansion of the U.S. health care market can only be good news for these companies and the growth of this knowledge-intensive sector in Ontario.