The Measurement of Output and Productivity in the Health Care Sector in Canada: An Overview. Report Prepared for the Canadian Medical Association (CAM). Ottawa: Centre for the Study of Living Standards

Abstract To achieve efficient allocation of resources in the health care sector, accurate measures of health care output and productivity are essential. According to Statistics Canada, productivity in the health care sector declined by 0.69 per cent between 1987 and 2006. It is widely recognized that official output and productivity figures may seriously underestimate the true contribution of the health care sector to real output, and more importantly to the economic well-being of Canadians. This report first discusses trends in output, prices, employment, and productivity in the Canadian health care and social assistance industry. Next, the paper discusses trends in Canadian health outcomes -the overall health and well-being of the population. The paper then describes alternative approaches to the measurement and valuation of health care output that may provide more reliable estimates of output and productivity of the health care sector. The paper concludes with a discussion concerning aggregate measures of the health care sector, including satellite health accounts