By CLIFFORD KRAUSS
Published: February 28, 2006
VANCOUVER, British Columbia, Feb. 23 — The Cambie Surgery Center,
Canada's most prominent private hospital, may be considered a rogue
enterprise.
http://www.nytimes.com/2006/02/28/international/americas/28canada.html?_r=2&oref=slogin&oref=login

Accepting money from patients for operations they would otherwise
receive free of charge in a public hospital is technically prohibited
in this country, even in cases where patients would wait months or
even years before receiving treatment.

But no one is about to arrest Dr. Brian Day, who is president and
medical director of the center, or any of the 120 doctors who work
there. Public hospitals are sending him growing numbers of patients
they are too busy to treat, and his center is advertising that
patients do not have to wait to replace their aching knees.

The country's publicly financed health insurance system — frequently
described as the third rail of its political system and a core value
of its national identity — is gradually breaking down. Private clinics
are opening around the country by an estimated one a week, and private
insurance companies are about to find a gold mine.

Dr. Day, for instance, is planning to open more private hospitals,
first in Toronto and Ottawa, then in Montreal, Calgary and Edmonton.
Ontario provincial officials are already threatening stiff fines. Dr.
Day says he is eager to see them in court.

"We've taken the position that the law is illegal," Dr. Day, 59, says.
"This is a country in which dogs can get a hip replacement in under a
week and in which humans can wait two to three years."

Dr. Day may be a rebel (he keeps a photograph of himself with Fidel
Castro behind his desk), but he appears to be on top of a new wave in
Canada's health care future. He is poised to become the president of
the Canadian Medical Association next year, and his profitable
Vancouver hospital is serving as a model for medical entrepreneurs in
several provinces.

Canada remains the only industrialized country that outlaws privately
financed purchases of core medical services. Prime Minister Stephen
Harper and other politicians remain reluctant to openly propose
sweeping changes even though costs for the national and provincial
governments are exploding and some cancer patients are waiting months
for diagnostic tests and treatment.

But a Supreme Court ruling last June — it found that a Quebec
provincial ban on private health insurance was unconstitutional when
patients were suffering and even dying on waiting lists — appears to
have become a turning point for the entire country.

"The prohibition on obtaining private health insurance is not
constitutional where the public system fails to deliver reasonable
services," the court ruled.

In response, the Quebec premier, Jean Charest, proposed this month to
allow private hospitals to subcontract hip, knee and cataract surgery
to private clinics when patients are unable to be treated quickly
enough under the public system. The premiers of British Columbia and
Alberta have suggested they will go much further to encourage private
health services and insurance in legislation they plan to propose in
the next few months.

Private doctors across the country are not waiting for changes in the
law, figuring provincial governments will not try to stop them only to
face more test cases in the Supreme Court.

One Vancouver-based company started a large for-profit family medical
clinic specializing in screening and preventive medicine here last
November. It is planning to set up three similar clinics — in Toronto,
Ottawa and London, Ontario — next summer and nine more in several
other cities by the end of 2007. Private diagnostic clinics offering
MRI procedures are opening around the country.

Canadian leaders continue to reject the largely market-driven American
system, with its powerful private insurance companies and 40 million
people left uninsured, as they look to European mixed public-private
health insurance and delivery systems.

"Why are we so afraid to look at mixed health care delivery models
when other states in Europe and around the world have used them to
produce better results for patients at a lower cost to taxpayers?" the
premier of British Columbia, Gordon Campbell, asked in a speech two
weeks ago.

While proponents of private clinics say they will shorten waiting
lists and quicken service at public institutions, critics warn that
they will drain the public system of doctors and nurses. Canada has a
national doctor shortage already, with 1.4 million people in the
province of Ontario alone without the services of a family doctor.

"If anesthetists go to work in a private clinic," Manitoba's health
minister, Tim Sale, argued recently, "the work that they were doing in
the public sector is spread among fewer and fewer people."

But most Canadians agree that current wait times are not acceptable.

The median wait time between a referral by a family doctor and an
appointment with a specialist has increased to 8.3 weeks last year
from 3.7 weeks in 1993, according to a recent study by The Fraser
Institute, a conservative research group. Meanwhile the median wait
between an appointment with a specialist and treatment has increased
to 9.4 weeks from 5.6 weeks over the same period.

Average wait times between referral by a family doctor and treatment
range from 5.5 weeks for oncology to 40 weeks for orthopedic surgery,
according to the study.

Last December, provincial health ministers unveiled new targets for
cutting wait times, including four weeks for radiation therapy for
cancer patients beginning when doctors consider them ready for
treatment and 26 weeks for hip replacements.

But few experts think that will stop the trend toward privatization.

Dr. Day's hospital here opened in 1996 with 30 doctors and three
operating rooms, treating mostly police officers, members of the
military and worker's compensation clients, who are still allowed to
seek treatment outside the public insurance system. It took several
years to turn a profit.

Today the center is twice its original size and has yearly revenue of
more than $8 million, mostly from perfectly legal procedures.

Over the last 18 months, the hospital has been under contract by
overburdened local hospitals to perform knee, spine and gynecological
operations on more than 1,000 patients.

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