Spending on healthcare is expected to reach $148 billion in 2006&#8212an increase of $8 billion, or 5.8%, over last year&#8212according to the Canadian Institute for Health Information’s report, National Health Expenditure Trends, 1975-2006.

The increase is slightly lower than the estimated annual growth rate of 6.4% in 2005 and lower than the average yearly rate of increase(7.8%)from 2000 to 2004.

After adjustment is made for inflation, health expenditures in 2006 are expected to grow by 3.7% or reach $120 billion in constant 1997 dollars.

“For the tenth consecutive year, healthcare spending continues to outpace inflation and population growth,” says Graham W. S. Scott, chairman of CIHI’s board.

“This sustained period of growth may be due in part to new public money flowing into healthcare delivery from federal/provincial accords. However, while healthcare spending continues to grow, it now appears to be growing at a slightly slower rate.”

Public-sector spending is expected to reach $104 billion this year, while private-sector expenditures will reach an estimated $44 billion.

For the first time in three years, healthcare spending in the public sector is expected to grow slightly faster than expenditures in the private sector, with estimated annual growth rates of 6.1% and 5.3% respectively.

This year, the public share is expected to account for 70.3% of total healthcare spending, in line with the 70/30 ratio of public/private spending seen over the last 10 years.

For the report, click here.

To comment on this story email craig.sebastiano@rci.rogers.com.