Changing healthcare capital-to-labor ratios: evidence and implications for bending the cost curve in Canada and beyond

Abstract

Healthcare capital-to-labor ratios are examined for the 10 provincial single-payer health care plans across Canada. The data show an increasing trend-particularly during the period 1997-2009 during which the ratio as much as doubled from 3 to 6 %. Multivariate analyses indicate that every percentage point uptick in the rate of increase in this ratio is associated with an uptick in the rate of increase of real per capita provincial government healthcare expenditures by approximately $31 ([Formula: see text] 0.01). While the magnitude of this relationship is not large, it is still substantial enough to warrant notice: every percentage point decrease in the upward trend of the capital-to-labor ratio might be associated with a one percentage point decrease in the upward trend of per capita government healthcare expenditures. An uptick since 1997 in the rate of increase in per capita prescription drug expenditures is also associated with a decline in the trend of increasing per capita healthcare costs. While there has been some recent evidence of a slowing in the rate of health care expenditure increase, it is still unclear whether this reflects just a pause, after which the rate of increase will return to its baseline level, or a long-term shift; therefore, it is important to continue to explore various policy avenues to affect the rate of change going forward.

Comparison of Four Common Gold Nanoparticles for Photothermal Cancer Therapy: A Review

“…The synthesis of medical technology should be rapid and efficient to optimize overall production and minimize costs [67]. AuNSs can be synthesized through a rapid reduction of HAuCl4, which is simple in comparison to the synthesis of other AuNPs.…”

“…AuNSs can be synthesized through a rapid reduction of HAuCl4, which is simple in comparison to the synthesis of other AuNPs. Their ability to be produced using a rapid, highly efficient microwave-aided method is a promising avenue for large, commercial scale production, which can reduce costs [39,67,68,69]. Furthermore, particle size can also be adjusted through controlling reaction times and temperatures [39,40].…”

Can rising labor costs boost private sector R&D investment? : Evidence from a survey of Chinese private firms

“…First, an increase in the minimum wage causes an increase in the wage level of firms. Second, most studies have concluded that rising labor costs promote firm technological innovation, but heterogeneity exists across industries, regions, and firms [ 3 , 6 , 27 ].…”

“…First, according to neoclassical economics, a relative increase in the price of labor factors will prompt firms to increase other input factors, such as capital, given that labor and capital are the two primary factors of production [ 4 , 5 ]. When there is no smooth substitution between factors, firms are incentivized to create or adopt new production conditions and increase labor productivity to reduce unit labor costs [ 6 , 7 ]. Second, rising labor costs may promote technological innovation through human capital accumulation in the face of increasing labor cost forces.…”

Measuring Purchasing Groups Performance in the Health Care sector

“…Canada is indeed a good research ground for purchasing groups. As is the case in other industrialized countries, huge efforts are made to control health care costs (Nauenberg, 2014). In the 1970s, various purchasing group initiatives took root in Canada, including in Alberta (Carney & de Lescure, 1984), in Saskatchewan (Lemon, 1984) and in Quebec (Nollet & Beaulieu, 2003).…”