Alberta ranks 2nd highest on health-care spending.

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Meeshika Sharma
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A new report suggests that Alberta is one of the biggest spenders on health care in the country. But one economist says the expenditures are even higher than they appear.

The Canadian Institute for Health Information (CIHI) forecasts total health spending in Alberta to reach $7,329 per person in 2017.

Michael Hunt, director of spending, primary care and strategic initiatives with CIHI said, "The economy is somewhat stronger than it has been in the last couple of years, so we are seeing a little more expenditure on health.

University of Calgary economist Trevor Tombe says the numbers are actually higher than they appear in the report, because Alberta's population is much younger than other provinces — only 12 per cent of the population is over the age of 65.

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Alberta's spending in 2015 compared with other provinces, excluding the territories, was 14 per cent higher once adjusted for age and gender, Tombe says.

Tombe says two of the most significant factors to address are high levels of physician compensation and per capita spending on hospitals.

Earlier this year, CIHI reported that doctors in Alberta are paid on average $380,000 annually, which is the highest average in the country followed by P.E.I. and Saskatchewan.

Internationally, the report says Canada's health spending per person in 2015 of $5,681 was similar to spending in France ($5,677), Australia ($5,631) and the United Kingdom ($5,170).

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