Canada's health care spending grows by over $5B above inflation and demographic pressures in 2026, signalling greater investment in system capacity

OTTAWA, ON, Nov. 10, 2026 /CNW/ -- A new report from the Canadian Institute for Health Information (CIHI) projects that Canada will spend $433 billion on health care in 2026, an increase of nearly 5% from the previous year.

After several years of high growth in health care spending, the pace of growth is moderating but remains above pre-pandemic levels. Health care spending is projected to grow faster than the economy -- bringing total national health care spending to nearly 13% of Canada's gross domestic product (GDP) this year.

Future health care spending trends

After the pandemic, increases in public-sector health care spending largely reflected pressures such as inflation and an aging and growing population. In 2026, spending is projected to grow by over $5 billion above these pressures, signalling a possible shift toward greater investments in health system capacity, care delivery, technology and innovation.

Looking ahead, health care spending will continue to be shaped by workforce and capacity pressures, capital investment, technology and artificial intelligence, and broader economic conditions. While investments in these areas may increase costs in the short term, they may also create opportunities to expand capacity and deliver care differently.

"What's notable this year is not simply that health care spending continues to grow, but that the factors behind that growth may be shifting," said Lacey Langlois, director of Health Spending at CIHI. "As population and inflation pressures begin to ease, we may see more health care spending translate into new health system capacity and new ways of delivering care. Health data is immensely valuable to assess how investments made within the sector make a difference for patients."

Health care spending breakdown

• Hospitals -- in particular, employee compensation -- remain the largest component of health care spending at over a quarter of the total national health expenditure, which is an increase of 5.1% from the previous year.
  • While growth in spending on private agency staffing, overtime and sick leave has slowed down from its post-pandemic peak, costs remain elevated compared with pre-pandemic levels.
• Physicians and drugs also saw increases in health care spending in 2026, accounting for about 14% and nearly 13% of the total national health expenditure, respectively.

Quick links

• National health expenditure trends, 2026 -- Snapshot
• Spending trends in health service delivery, 2026 -- Snapshot and data tables

About CIHI

The Canadian Institute for Health Information (CIHI) is an independent, not-for-profit organization dedicated to providing essential health information to all Canadians.

CIHI works closely with federal, provincial and territorial partners and stakeholders throughout Canada to gather, package and disseminate information to inform policy, management, care and research, leading to better and more equitable health outcomes for all Canadians.

Health information has become one of society's most valuable public goods. For more than 30 years, CIHI has set the pace on data privacy, security, accessibility and innovation to improve Canada's health systems.

CIHI: Better data. Better decisions. Healthier Canadians.

SOURCE Canadian Institute for Health Information (CIHI)

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