Opinion: The 2024 U.S. Election and Its Far-Reaching Impact on Canada’s Healthcare Sector
How the 2024 U.S. Election Could Reshape Healthcare in Canada
The U.S. election on November 5, 2024, may seem like an American affair, but its impact could reach directly into Canada’s healthcare system. From drug prices and medical supply chains to public health and immigration, our healthcare landscape is deeply connected with U.S. policies. Here’s how the recent election results might affect healthcare here in Canada and what steps our policymakers can take to safeguard our system.
Drug Policies and Protecting Our Own Supply
With Americans facing steep prescription costs, U.S. leaders are now eyeing Canadian drugs as a way to make medicine more affordable. While this could be a win for American patients, it risks creating shortages and pushing up prices in Canada.
Why It Matters: Canada’s relatively low drug prices are attracting attention south of the border. In 2022, Canadians spent CAD 39.8 billion on prescription drugs. If the U.S. starts importing more from our shelves, the increased demand could lead to supply issues and price hikes here at home.
The Canadian Strategy: Canada could consider limiting exports of high-demand medications to ensure our own supply. Strengthening domestic drug production would help us maintain stable access and affordable prices. And by exploring deals with other countries for key medications, we can ensure that our drug supply stays secure—no matter what the U.S. does.
Trade Policies and Medical Supplies: Securing What We Need
Our healthcare system is heavily reliant on medical imports from the U.S., including everything from medicines to diagnostic equipment. About 75% of our medical supplies come from America. So, if U.S. trade policies change, it could lead to supply delays, higher prices, and even shortages here in Canada.
A Wake-Up Call from COVID-19: The pandemic exposed the risks of relying on a single supplier for critical medical goods. Canada imports over CAD 8 billion in medical supplies from the U.S. each year. Any policy shift, whether it’s tariffs or restrictions, could make it harder for us to get the items our hospitals rely on.
Building a Resilient Supply Chain: Canada needs to focus on producing more of its medical supplies domestically and diversify imports to include partners in Europe, Asia, and beyond. Supporting local manufacturers will also help us maintain a steady supply and control costs. This approach strengthens our healthcare system and prepares us for future emergencies.
Research and Innovation: Protecting Canada’s Health Independence
U.S. healthcare policies don’t just affect drug prices—they also impact research and innovation. Canada’s pharmaceutical and biotech industries benefit from collaborating with American institutions, but any shifts in U.S. funding could slow down our access to new treatments.
Our Ties to U.S. Research: Canadian research projects, particularly in pharmaceuticals, often rely on American funding and collaboration. According to the Canadian Medical Association, around 12% of clinical trials in Canada involve U.S. partnerships. If the U.S. tightens its research budgets, it could delay progress on vital health innovations here.
A Path Forward for Canada: To protect our healthcare innovation, Canada should invest more in homegrown research and development. Expanding partnerships with Europe and Asia, and supporting local biotech and pharmaceutical companies, will ensure that Canada remains on the cutting edge—independent of U.S. policy changes.
Immigration and Workforce Dynamics: Making Canada a Top Choice for Healthcare Talent
Canada’s healthcare system depends on skilled immigrant workers, with 20% of healthcare professionals trained outside of Canada. Immigration policies in the U.S. could affect our ability to attract healthcare talent. If America becomes more restrictive, Canada could see an influx of skilled professionals. However, if U.S. policies open up, we may face increased competition.
Canada’s Healthcare Shortage: Canada currently has a healthcare worker shortage, with a 13% job vacancy rate in 2023. This affects roles like nurses, general practitioners, and specialists. Attracting talent from abroad could help fill these critical gaps.
What Canada Can Do: To draw top healthcare talent, Canada should offer faster visa processing, relocation incentives, and support for skilled workers. Creating targeted immigration programs focused on healthcare professionals will make Canada an attractive destination. And by partnering with other countries, Canada can secure a consistent stream of skilled healthcare workers to support our system.
Public Health and Pandemic Preparedness: Strengthening Cross-Border Collaboration
The pandemic made it clear that Canada’s health security is linked with the U.S., particularly when it comes to disease tracking and response. Working with U.S. agencies helps Canada prepare for and manage public health threats. If the new U.S. administration prioritizes pandemic preparedness, it could enhance our shared public health measures.
Our Shared Health Data: Approximately 15% of Canada’s public health data exchange involves the U.S., which supports efforts like tracking infectious diseases and managing vaccines. Any drop in U.S. funding for public health could impact our ability to collaborate effectively.
Planning for the Future: Canada should work on formalizing health security agreements with the U.S. to ensure ongoing collaboration, no matter what happens in American politics. Expanding partnerships with organizations like the WHO could also strengthen Canada’s pandemic preparedness and help us respond quickly to global health threats.
Technology and Innovation: Supporting Canada’s Growth in Health Tech
The U.S. leads global healthcare innovation, from AI to telemedicine. While Canada benefits from these advances, any changes in U.S. priorities could limit our access to new healthcare technology. To stay competitive, Canada needs to invest in its own health tech sector.
Relying on U.S. Tech: In 2022, the U.S. invested over $38 billion in healthcare innovation. Canada imports about 30% of its healthcare technology from the U.S., making us vulnerable to American policy changes. If U.S. funding for healthcare tech shifts, it could impact the pace of innovation here.
Building Our Own Innovation Ecosystem: Canada can reduce its dependence by investing in local health tech startups and partnering with global tech hubs. Funding initiatives focused on Canadian innovation will help us develop homegrown solutions that meet our unique needs.
Final thoughts — How this is shaping Canada’s Healthcare Future
The U.S. election results remind us of how interconnected our healthcare systems are. By planning ahead, Canada can build a healthcare sector that’s resilient, independent, and prepared for future challenges. From securing our drug supply to fostering innovation and attracting talent, Canada’s leaders have the opportunity to shape a healthcare system that works for Canadians—no matter what’s happening south of the border.