Healthcare financing systems

Healthcare financing systems

High Cost of the Health Services

The affordability of private health care is low among ordinary people.  Indeed, most of the facilities that the private health institutions have are expensive, and the institutions target realizing funds to compensate for the cost. As a result, the interests of the institutions’ shifts from administering better services to the patients and instead focus on the patients’ pockets. For instance, people with good income prefer the private institutions and on most occasions do not compromise the charges. Resultantly, the institutions opt for high expenses to the extent that ordinary civilians cannot afford. According to the report from C.D. Howe Institute, there is an effort by there must be an inexorable rise in the cost of the private health care institutions to realize the installation cost, and increasing personal payments can only achieve such. Such findings support the idea that the private institutions run at a high price to realize the profits and as well recover the cost used during the installation.

High Remunerations

The privatization of healthcare requires the specialist and trained personnel to run them. For one, the private institutions seek to outweigh the public institutions ion both quality and the number of the patients attended. As a result, they will offer to pay more for the managers and the clinicians with the purpose of attracting more. Such places the institutions at a high operational cost where they will splash more funds in the remuneration. Indeed, The Conference Board of Canada points that; there is a lot of pressure in the private health care systems in keeping the health providers since they need more pay since the public health centers keep reviewing the remuneration of the health providers. As well, one cast linked with the making improved access to care among the private health institutions are paying the health care professionals, who in turn feel motivated and provide quality services to the clients.

Difficult In Reducing the Waiting Times

Sometimes the health care professionals in Ontario seem reluctant to accommodate the effective decrease in the waiting time. According to the Former Canadian Medical Association President Dr. Tumbull, reducing the waiting time in the private health care systems means the restructuring and reforming of them. The process is hectic as the managers, and the health providers will have to review the data and change the mannerism of attending the patients. Fundamentally, the health centers may opt to increase the serving hours to the physicians or organize them into shifts at the expense of hiring more providers to cater for the increased work rate.  As well, the average operational time will have to change from 36 days to 2 days and such may mean possible burdening of the health providers as Saskatchewan suggests. Therefore, the implementation of the change is difficult in Ontario as the physicians will hesitate to comply to it which may not bring the intended solution.

Purpose to Realize Cost and Not to Offer Quality Care

Often, one of the most significant challenges with the privatization of health care is the shift of the focus to realizing more profits. Indeed, the management assumes the following strategies in its bid for more gain. For one, the institutions reduce the quantity and quality of the services when insurance companies pay for them. Meanwhile, they offer special services such as the waiting line, which may be at prices that the patients cannot afford.

Additionally, the zeal to maximize profits sometimes cause questionable or even criminal practices. Honestly, private health care health institutions sometimes disregard the welfare of the clients in the drive to realize more revenue. They also choose to raise the earnings by harnessing the beneficial services and discarding the cheap services, which most of the ordinary people targets. Moreover, they sometimes withhold the provision of the extension services to the health providers such as training and participating in the innovation programs. The reason for the withdrawal is to reduce the production cost, which may decrease the marginal returns. Conclusively, the quest for the in-profit projects is detrimental to the common goal of the health care systems, which is the provision of the quality care, and may pollute the efforts of the sectors to serve the patients with willingness.

Allocation of the Insurance Policies

The private health intuitions are often granted fewer allocations of the insurance covers. Honestly, the allocation values the public institutions where the enrolled patients access healthcare from such institutions. Although the enrolled patients access the healthcare at lower or no cost, the government allocates the right amount of funds to the chosen institutions which in most occasion is unused. Similarly, the health care institutions are promoted based on the trust and the recognition it receives from the states and the health organizations; as a result, the private organizations are locked out from the favor of the health insurance policies. For example, The Ontario Health Insurance Plan prioritizes the public health institutions in the province of Ontario and provides benefits such as paying for doctor’s visits, podiatry, ambulance services among others and the patients use cards to access such services. As a result, privatized health institutions rarely get this favor, which helps institutions relieve some financial burden in their departments.


Private health care institutions in the province of Ontario have started gaining fame in the administration of health services. The recruitment of the health providers and the installation of the health facilities places pressure in the finances needed. As a result, the private health sectors have resolved to charge the patients more to realize this cost.  Similarly, the health professionals are paid a lot due to the competitions from the private health care institutions, and such contributes to the high cost of health care in the individual institutions. As a result, private institutions need to restructure their operations and management for the shift from making money to providing quality services, which will attract more customers.


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Gandhi, S., Chiu, M., Lam, K., Cairney, J. C., Guttmann, A., & Kurdyak, P. (2016). Mental health service use among children and youth in Ontario: Population-based trends over time. The Canadian Journal of Psychiatry61(2), 119-124.