Health care spending in B.C. is slated to increase by a modest 3.2 per cent, according to the three-year provincial budget announced by Finance Minister Kevin Falcon last week.

The increase will barely keep up with inflation and could effect the delivery of services at the Nicola Valley Health Centre, said Fraser-Nicola MLA Harry Lali.

The B.C. Liberals averaged a 5.6 per cent increase over the last two years and seven per cent between 2005 and 2009, making this year’s announcement much lower.

“It won’t even cover all the increases to heating, lighting and overhead, and even just the cost of inflation,” Lali said from Victoria after the budget announcement. “The cuts will affect health care in our constituency, we just don’t know yet exactly how that is, but it will show up in the next few months.”

Chief Financial Officer for Interior Health Donna Lommer supported the modest increase.

“The previous growth rate in health budgets is simply not sustainable,” she said. “It represents a significant cost in the overall budget and we need to be accountable for how we expend those funds.”

She said Interior Health has to shift focus to improve community service without relying as much on acute care.

Health authorities are scheduled to meet soon to discuss restructuring spending.

According to Falcon, B.C. health care is still among the best in Canada, despite the second-lowest spending per capita in Canada.

“Even with this modest growth, health care is projected to account for more than 42 per cent of total government spending by 2014-15,” he said. “We can’t just keep pouring more and more dollars in. We have to find creative ways to minimize expenses – and we are.”

Falcon said that while B.C. is among the lowest-spending province on health care, “we have the nation’s highest life expectancy (81.4 years), the lowest death rate from cancer (147.4 per 100,000) and the second-lowest death rate (after Quebec) from heart disease.”

The 3.2 per cent increase accounts for $1.5 billion over that period and $17.3 billion by 2014-15. Health care accounts for $16 billion of the budget.

BC Nurses’ Union president Debra McPherson said the budget does nothing to deal with hospital overcrowding and increased surgery wait times.

“It shows the government has its priorities all wrong. Instead of boasting about keeping taxes low and the prospect of a balanced budget just before the next provincial election, the government should be addressing the serious deficit in the quality of health care and other services for B.C. citizens.”

MSP to rise

The budget included another way for the government to cover medical expenses. Medical Service Premiums are slated to rise by four per cent in January 2013, representing a $5 monthly increase to a family of three or more.

B.C. and Quebec are the only provinces to charge health premiums. An individual in B.C. pays $64 per month, while couples pay $116 and a family is charged $128.

The increases are expected to generate an additional $87 million to the $2-billion MSP fund.

However, approximately 800,000 residents don’t pay premiums due to low income. Many others pay a portion of the rate.

Nearly half of all residents have their employer pay for premiums.

By the numbers

Provincial spending is slated to increase by two per cent, which is consistent with what Falcon calls a “net zero mandate.”

Falcon said the government will continue to honour a 2010 pledge to freeze public-sector salaries into 2012.

The modest spending increase represents the tightest three-year budget in recent B.C. history.

Falcon promised B.C. would be back in black by 2013 with a $154-million surplus, which would be in time for the next provincial election.

Tobacco tax is slated to increase in 2013 and the government plans to sell $706-million in assets, which includes the provincial liquor distribution branch.

Due to the implimentation and then elimination of the HST – representing $1.6-billion in repayment of HST incentive to Ottawa – the deficit more than doubled to $2.5-billion.