---
canonical_url: "https://csls.ca/research/the-measurement-of-output-and-productivity-in-the-health-care-sector-in-canada-an-overview/"
title: "The Measurement of Output and Productivity in the Health Care Sector in Canada: An Overview"
author:
  name: "CSLS"
  url: "https://csls.ca/author/cslc/"
date_published: "2026-07-02T13:41:20+00:00"
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  - "Canada"
province_region:
  - "National"
research_theme:
  - "Productivity and Economic Measurement"
  - "Sector/Industry Analysis"
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# The Measurement of Output and Productivity in the Health Care Sector in Canada: An Overview

Canonical URL: https://csls.ca/research/the-measurement-of-output-and-productivity-in-the-health-care-sector-in-canada-an-overview/

# The Measurement of Output and Productivity in the Health Care Sector in Canada: An Overview

[Download full PDF report](https://csls.ca/pdf/csls2007-06-1.pdf)

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Cite this report as:

Sharpe, Andrew, Celeste Bradley, and Hans Messinger. 2007. “The Measurement of Output and Productivity in the Health Care Sector in Canada: An Overview.” CSLS Research Report 2007-06. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/the-measurement-of-output-and-productivity-in-the-health-care-sector-in-canada-an-overview/

## Authors:

-
Andrew Sharpe
Centre for the Study of Living Standards (CSLS)

-
Celeste Bradley
Statistics Canada

-
Hans Messinger
Statistics Canada

## Report 2007-06

December 2007 58 pages

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## Abstract

## Résumé

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To achieve efficient allocation of resources in the health care sector, accurate measures of health care output and productivity are essential. According to official estimates of productivity produced by Statistics Canada, labour productivity in the business sector of the health care (excluding hospitals) and social assistance industry declined 0.28 per cent per year between 1994 and 2003. Estimates of productivity produced by the CSLS, based on official Statistics Canada employment and real GDP figures, show that labour productivity in the health care and social assistance industry declined by 0.69 per cent per year 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. Alternative approaches show that price indices for health care output may be overestimated and, therefore, quality improvements may not be accurately captured by estimates of real health care output. More resources are needed to further investigate the alternative approaches discussed in this report and develop better output measures that adjust for outcomes directly related to health care spending.

Afin de réaliser une allocation efficace des ressources dans le secteur de la santé, il est essentiel de disposer de mesures exactes de la production et de la productivité de ce secteur. Selon les estimations officielles de la productivité produites par Statistique Canada, la productivité du travail dans le secteur des entreprises des soins de santé (à l’exclusion des hôpitaux) et de l’assistance sociale a reculé de 0,28 % par année entre 1994 et 2003. Les estimations de productivité produites par le CSLS, fondées sur les données officielles d’emploi et de PIB réel de Statistique Canada, montrent que la productivité du travail dans l’industrie des soins de santé et de l’assistance sociale a reculé de 0,69 % par année entre 1987 et 2006. Il est largement reconnu que les chiffres officiels de production et de productivité pourraient sous-estimer considérablement la contribution réelle du secteur de la santé à la production réelle et, plus important encore, au bien-être économique des Canadiens. Des approches de rechange montrent que les indices de prix de la production des soins de santé pourraient être surestimés et que, par conséquent, les améliorations de la qualité pourraient ne pas être saisies avec exactitude par les estimations de la production réelle des soins de santé. Davantage de ressources sont nécessaires pour approfondir l’examen des approches de rechange traitées dans ce rapport et élaborer de meilleures mesures de la production qui tiennent compte des résultats directement liés aux dépenses de santé.

[Download full PDF report](https://csls.ca/pdf/csls2007-06-1.pdf)
