IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 11 NO. 5 2025
DOI: 10.56201/ijssmr.vol.11no5.2025.pg351.375

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A Comparative Analysis of U.S. and Canadian Healthcare Expenditures (1975–2008): Insights from Canada's Regulatory Framework

Chris Nnamdi Anazia

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Abstract

Over the past several decades, healthcare expenditures in the United States have substantially outpaced those in Canada, both in absolute terms and as a share of Gross Domestic Product (GDP). Between 1975 and 2008, the U.S. healthcare system experienced sustained increases in spending driven by higher costs for hospital care, physician and clinical services, and prescription drugs. This study conducts a comparative and descriptive analysis of healthcare expenditure growth in the United States and Canada, focusing on identifying the structural, economic, and policy-related factors contributing to divergent cost trends. Using secondary data and literature from peer-reviewed journals, government reports, and healthcare databases, the study analyzes spending trajectories, healthcare delivery models, and cost-containment strategies employed by both nations. The findings reveal that Canada's publicly funded, single-payer system has maintained greater cost control and equity in access compared to the market-oriented and fragmented U.S. system, which has led to inefficiencies and disparities in care. Total healthcare expenditures and healthcare spending as a percentage of GDP have been consistently and significantly higher in the United States than in Canada from 1975 to 2008. Key drivers of this disparity include hospital care, physician and clinical services, and prescription drug expenditures. These components have played a major role in the rising costs of healthcare in the U.S., outpacing those in Canada. This study conducts a comprehensive review of existing literature on the rising trajectory of healthcare costs and explores the economic, policy, and systemic factors that have contributed to these increases. It offers a comparative and descriptive analysis of healthcare spending patterns in both countries over the 33-year period, identifying key differences in healthcare financing, service delivery, and policy interventions

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