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Landmark study concludes that more privatization would lead to a huge increase in health costs

Regina, June 9, 2004 – A landmark study has concluded that if Canada switched to private for-profit hospitals it would add $7.2 billion a year in health costs. Research published in the Canadian Medical Association Journal this week supports a policy of not-for-profit health care delivery at the hospital level. Private for-profit hospitals result in both higher mortality rates and greater payments for care than do not-for-profit hospitals. The research also concluded that profit-making hospitals cost about 19 per cent more than non-profit facilities.

The study, conducted by McMaster University health researchers, is a systematic review and meta-analysis of studies comparing how much care costs in private for-profit versus private not-for-profit hospitals in the United States.

"This study should put an end to the discussion around private and not-for-profit health-care delivery in Canada, especially in light of the federal election which is nineteen days away," said Donna Brunskill, RN, Executive Director of the Saskatchewan Registered Nurses’ Association (SRNA). "There is no question that combined with previous studies that revealed a higher mortality rate in private hospitals, a policy of not-for-profit health-care delivery is the way to go," she added.

"The SRNA commends the researchers for their excellent and timely analysis," said Candace Skrapek, RN, SRNA President. "It provides overwhelming proof that there is no evidence to support the expansion of private health-care delivery. The Romanow report had it right! This must surely put a halt to any support for private for-profit health-care delivery."

"We continue to concur with Canadians who are more committed than ever to publicly funded health care that does not profit from a person’s illness," said Brunskill.

The SRNA is challenging the governments to take notice of this study and commit to not-for-profit health care.

The SRNA is the professional regulatory body for registered nurses in the province. Founded in 1917, the SRNA represents the largest group of health professionals in the province with almost 9,000 practising members. The SRNA speaks out on health care issues on behalf of registered nurses and the public.

For more information, contact:
Maureen Belanger
Communications Coordinator
Saskatchewan Registered Nurses' Association
(306) 359-4243

For further study details see: www.cmaj.ca

Last Updated: May 4, 2008

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