2023-24 Raison d’être and Operating context and key risks: Health Canada

Raison d'être

Health Canada regulates specific products and controlled substances and supports innovation and information sharing in Canada's health system to help Canadians maintain and improve their health.

Mandate and role

At Health Canada, our role is to help Canadians maintain and improve their health. While the provinces and territories are responsible for delivering health care to the majority of Canadians, the federal government also has a number of key roles and responsibilities in areas that affect health and health care. In addition to working closely with provincial and territorial governments, we also work with partners in the Health Portfolio (Public Health Agency of Canada, Canada Food Inspection Agency, and Canadian Institutes of Health Research), other federal departments and agencies, non-governmental organizations, Indigenous partners, other countries, and the private sector.

As a partner in health, Health Canada:

The meals we serve our families, the pesticides farmers put on crops, the herbal remedies, vitamins and drugs in our medicine cabinets, the toys we buy our children - are all products regulated by Health Canada for safety. Thousands of new products, with new ingredients and new purposes, are introduced by industry every year in Canada. Health Canada's decisions are made with Canadians' best interests in mind, whether to approve the safety and quality of new products or to provide advice after the products have reached the market. Our actions are supported by scientific evidence.

The Department is committed to upholding the Canada Health Act and protecting our publicly funded health care system, which helps to ensure Canadians have access to quality, universal health care based strictly on their medical needs, not an individual's ability and willingness to pay. We also promote innovation and the use of best practices across Canada.

Health Canada's vision is to help make Canada's population among the healthiest in the world. From coast to coast to coast, Health Canada employees - scientists and researchers, inspectors, doctors and nurses, policy analysts and administrative professionals, and many others - are working to help Canadians maintain and improve their health.

As a regulator, service provider, promoter of innovation, and trusted source of information, we are a partner in health for all Canadians.

For more information on the Department's organizational mandate letter commitments, see the Ministers' mandate letters.

Operating context

Health Canada operates in a complex and dynamic environment, facing several challenges as it works to deliver results for Canadians. Many of these challenges – such as ensuring the health workforce is well supported, broader substance use-related harms, global supply chain issues, and climate change – are beyond the sole control of the Department. Solving complex challenges involves working collaboratively with federal partners, non-governmental stakeholders, provinces and territories (P/Ts), Indigenous organizations, industry, and international regulators.

In 2023-24, Canada's health workforce continued to experience challenges. The ongoing shortage of health workers contributed to difficult working conditions, high patient workloads and significant overtime requirements that put added strain on the health workforce. Canadians felt the impacts as emergency rooms continued to be overwhelmed, particularly in rural, remote and isolated communities which still experience occasional closures, while many Canadians lacked a primary care provider, and wait times for priority procedures continued to be higher than pre-pandemic averages across the health system. Finally, additional emerging health threats (e.g., various respiratory viruses) continued to challenge Canada's healthcare systems. In 2023-24, Health Canada funded Health Workforce Canada, a new independent organization, established with the support of the Canadian Institute for Health Information to improve the accessibility of health workforce data and share practical solutions and innovative practices addressing gaps and implementation challenges in health workforce planning.

Health care systems in Canada faced numerous challenges in terms of sustainability, access to services, and service delivery. Health care delivery is primarily under P/T jurisdiction with federal funding administered via the Canada Health Transfer. Health Canada advanced the Government's Working Together to Improve Health Care for Canadians plan, to support P/Ts on shared priorities: expanding access to family health services; supporting health workers and reducing backlogs; improving access to quality mental health and substance use services; modernizing the healthcare system with standardized health data and digital tools; and helping Canadians age with dignity and closer to home. In 2023-24, the Government of Canada signed bilateral agreements with all P/Ts, providing funding to support shared health priorities to strengthen Canada's universal public healthcare system. Additionally, the Department continued to explore and experiment with new technologies such as artificial intelligence and remained agile in its delivery of essential programs and services.

Canadians faced increasing costs-of-living and expensive prescription drugs due to inflation, high-interest rates, and fiscal restraints. This created socioeconomic and geographical barriers to essential, high quality, and timely health care services, including oral health care. The effects were felt most acutely by vulnerable populations, contributing to financial hardships, and deteriorating overall health outcomes. The Government of Canada invested in health care services via bilateral agreements to provincial and territorial governments and through pan-Canadian and community-based health organizations to support access for all residents of Canada to appropriate and effective health services, including prescription drugs, sexual and reproductive health, and territorial health systems. Health Canada has also begun to support eligible Canadian residents and their families to access oral health care services.

The effects of climate change and extreme weather events such as wildfires, heat waves, floods, and droughts, continued to intensify across Canada, affecting the health of Canadians. In addition to supporting efforts to respond to such events, in 2023-24 Health Canada developed a Departmental Climate Change Adaptation Plan. The purpose of the Plan is to increase Health Canada's resilience to the impacts of climate change and to guide the response to identified departmental risks affecting programs, services, and operations.

A dangerous synthetic illegal drug supply, including fentanyl and emerging synthetic opioids, is driving a severe overdose crisis in Canada. To address this, the Government of Canada is working to connect people with treatment, recovery services, harm reduction, and other supports like housing support. In 2023-24, Health Canada renewed the Canadian Drugs and Substances Strategy (CDSS) which supports a comprehensive, culturally appropriate, collaborative, compassionate, equitable and evidence-based approach to the overdose crisis and substance use related harms. The renewed CDSS builds on the work and momentum of the previous strategy to address substance use-related harms and deaths, including the dangerous, synthetic illegal drug supply and overdose crisis in Canada. The strategy focuses on health, social well-being and public safety, recognizing that more needs to be done to help people and keep communities safe.

Underserved Canadians continued to bear the brunt of health events. Facilitating access to quality health care, mental health care, addiction programs and support services required a collaborative approach between all F/P/T partners and key stakeholders. All levels of government have been adjusting to the changing needs and expectations of Canadians and leveraging technological advances to improve quality of care and health outcomes. As a partner in the national health care system, the Department worked closely with P/T governments and stakeholders to develop national approaches to health systems issues and to promote the Pan-Canadian adoption of best practices. In collaboration with PT partners, Health Canada is advancing a Joint F/P/T Action Plan to deliver on the health data commitments outlined in the Working Together to Improve Health Care for Canadians plan, and support modernizing the healthcare system with standardized health data and digital tools.

Rising commodity prices, inflation, debt and economic slowdown resulted in additional challenges for both Health Canada and Canadians in terms of acquiring and affording necessary health and food products, which in turn exposes ongoing inequalities in communities. In addition, geopolitical issues and supply chain challenges (e.g., extreme weather events due to climate change) impacted manufacturers' abilities to meet Canadian market demand for certain drugs and medical devices. Health Canada increased surveillance and data collection to improve oversight of the supply of and demand for critical drugs and supported approaches to develop a more resilient supply for Canada.

The increased pace of scientific and technological innovation, globalization, and the complexity of the global supply chain are key challenges for regulators. Effectively regulating new and innovative products, substances, food and emerging product categories in a global marketplace requires flexible regulatory approaches. Creating and strengthening relationships with domestic and international partners was key to facilitating cooperation and developing consistent approaches to novel products. However, limited resources, challenges in properly assessing and addressing security threats such as cyberattacks, and political barriers to government collaboration could have a detrimental effect on Health Canada's ability to participate on the international stage. Health Canada has responded to these challenges by exploring how virtual and remote tools for inspections can be leveraged to maintain oversight in domestic and foreign inspection programs, supporting advancements of international standards, and adapting to changing business models in the supply chain. The Department worked with international partners to explore how remote inspections might improve oversight in foreign inspections. This included participating in the International Coalition of Medicines Regulatory Authorities collaborative hybrid inspection pilot.

Canadians expect the Department to provide high quality, scientific, and evidence-based health information. However, public trust in Health Canada as a source of credible information is threatened by increasing misinformation and disinformation regarding health products, other regulated substances, policies, and practices. These originate from a wide range of sources easily accessible to the public. This poses a challenge to regulators in terms of responding quickly and decisively in the face of eroding trust in scientific bodies and health regulators. Canadians continue to expect their government to be open and transparent and to effectively engage them in decision-making. Clarity on direction and sharing accurate and timely information with stakeholders and the public helps ensure that the Department is viewed as a trusted source of information and that individuals and organizations have the information needed to act on their health and safety. The Department continued to provide high quality, scientific and evidence-based health information through a range of online and traditional communication tools and channels.

Inequities persist in health care, communities, and workplaces across the country. Diversifying the health care and public workforce increases access to quality health care for all populations, reduces health disparities, improves cross-cultural communication, and contributes to health equity. The Department's values - fostering a diverse and inclusive workplace that is free of racism and discrimination and where all employees are treated with respect, dignity, and fairness - form the foundation of who we are, what we do, and how we do our work. Health Canada remained committed to its ongoing response to the Clerk's Call to Action on Anti-Racism, Equity, and Inclusion in the Federal Public Service, the Clerk's Call to Action Forward Direction Message to Deputies, the Deputy Ministers' Commitments on Diversity and Inclusion, and the President of the Treasury Board's Priorities for actions to increase diversity and inclusion in the public service.

Key risks

Health Canada has a well-established risk management process that enables the Department to respond proactively to change and uncertainty by understanding and monitoring its operating environment and the factors that drive risks.

Key risk for core responsibility 1: health care system

1. Upholding the Canada Health Act Risk: Health Canada's ability to effectively uphold the Canada Health Act (CHA) could be put at risk by challenges in administering the Act.

Technological advances and evolutions in health care treatment and delivery requires Health Canada to uphold and administer the CHA in an ever-changing health care landscape. The Department's proactive responses have mitigated the risks associated with the administration of the CHA during the 2023-24 fiscal year. Specifically, Health Canada undertook the following:

Monitored and reported on compliance:

Monitored and reported on compliance with the CHA. For example:

Implemented new policies:

The Department continued to develop policies to ensure that the integrity of core Medicare services are safeguarded as new modes of health care delivery and are integrated into the Canadian healthcare system, specifically:

Worked to resolve issues with P/Ts:

Monitored litigation:

Monitored changes in health care delivery:

2. Reputational Risk: Partners, stakeholders and Canadians may lose confidence in Health Canada's ability to lead complex and multijurisdictional initiatives if the Department does not deliver on commitments and programs in a timely and effective manner.

To ensure that Health Canada continues to lead complex and multijurisdictional initiatives in a timely and effective manner, the Department successfully implemented effective risk responses in the 2023-24 fiscal year. Specifically, Health Canada undertook the following:

Fostered collaborative partnerships:

Foster collaborative partnerships with other government departments and agencies, and P/Ts to share resources, expertise and responsibilities when implementing complex initiatives. For example:

Ensured openness and transparency:

Provided regular updates to other federal government departments and agencies, P/Ts, Indigenous partners, stakeholders and people in Canada to manage expectations and build trust. For example:

Strengthened oversight and governance:

Maintained oversight while upholding principles of accountability and ethical decision-making. For example:

Encouraged innovation and operational efficiency:

Fostered a culture of creativity and problem-solving, where the Department can seek novel solutions to complex problems. For example:

Key risks for core responsibility 2: health protection and promotion

3. Public Trust Risk: Canadians may not trust Health Canada's ability to help protect and improve their health if the Department is not regarded as a reliable regulator and considered as a credible source of information.

To ensure that Health Canada continues to be seen as a trusted regulator and credible source of information and to help Canadians make informed health and safety decisions, the Department successfully implemented effective risk responses in the 2023-24 fiscal year. Specifically, Health Canada undertook the following:

Implemented informative initiatives:

Increased and updated regulatory health and safety information that is made available to Canadians in a simple and accessible way. For example:

Offered engagement opportunities to Canadians and stakeholders:

In line with the Government of Canada's Open Government initiative and Health Canada's Forward Regulatory Plan, provided opportunities for Canadians and stakeholders to become involved in decision-making processes, including the development of the regulatory process. For example:

Modernized communications about Health Canada's role as a regulator:

Continued to acquire, develop and improve the tools, processes and resources needed to effectively communicate with, and engage, Canadians on Health Canada's digital platforms, including Canada.ca, Healthy Canadians' podcast, and Health Canada media channels. For example:

Advance regulatory modernization initiatives:

Continued to modernize the federal regulatory system for health products and food through the Department's efforts to make the regulations more responsive to an innovative environment, while ensuring the system remains science and safety-based and more internationally aligned. For example:

4. Regulatory Risk: Health Canada's ability to help protect the health of Canadians may be weakened due to the increasing complexity of the global supply chain, the rapid pace of innovation, and increasing e-commerce from global sources.

To help protect Canadians from the risks of products in an innovative and globalized environment, the Department successfully implemented risk responses to alleviate the risk. Specifically, Health Canada undertook the following:

Strengthened oversight:

Developed strategies and tools to strengthen market surveillance and oversight of emerging products and supply shortage. For example:

Collaborated internationally:

Collaborated with international regulatory organizations and aligned where appropriate with foreign regulators. For example:

Addressed changing business models in the supply chain:

Strengthened oversight of foreign sites involved in the manufacturing of health products. For example:

Key risks for internal services

5. People Risk: Health Canada's ability to deliver on its mandate effectively may be at risk due to challenges in maintaining a high performing, bilingual, and diverse workforce within a healthy workplace.

To ensure the Department continued building a healthy, diverse, inclusive, and ethical workforce; enabling a safe and productive workforce with access to modern tools and facilities; and communicated to Canadians that the Department successfully implemented effective risk responses in the 2023-24 fiscal year. Specifically, Health Canada undertook the following:

Supported workplace wellness initiatives:

Invested in initiatives to foster a healthy and safe workplace. For example:

Promoted diversity, values and ethics, bilingualism and inclusion:

Encouraged diversity, values and ethics, bilingualism and inclusion. For example:

Attracted and retained skilled and talented employees:

Maintained a high-performing workforce with the appropriate skills and competencies. For example:

6. Technology and Infrastructure Risk: Health Canada's ability to deliver its programs and services may be at risk due to the Department's aging physical and IT infrastructure, deferred maintenance, limited funding, limited data analytics capacity and challenges in safeguarding IT assets from cyberattacks.

To ensure Health Canada continued to collaborate across the Health Portfolio to encourage and support the modernization and security of the workforce by providing access to up-to-date IM/IT tools and adapting IT systems to foster collaboration and support a productive hybrid workforce, the Department successfully implemented effective risk responses in the 2023-24 fiscal year. Specifically, Health Canada undertook the following:

Continued to update IT and lab infrastructure:

Equipped employees with modern, enhanced, and secure infrastructure. For example:

Promoted digital transformation:

Established a Service and Digital Strategy to foster transformation and enhance efficiency and effectiveness of programs and services through the following:

Promoted training and awareness:

Ensured Department vigilance and raised employee awareness. For example:

Strengthened oversight:

Implemented oversight strategies and fostered both remote and on-site security. For example:

Key risk for strengthening emergency preparedness

7. Major Health Events Risk: Health Canada's ability to achieve its mandate may be at risk due to challenges posed by major disruptive events such as extreme weather and pandemics.

Health Canada used every tool available, leveraged resources and collaborated with F/P/T partners to protect the health of Canadians. The Department sustained a high level of activity to respond to and mitigate risks associated with major health events while continuing to deliver on its mandate in 2023-24. Specifically, Health Canada undertook the following:

Provided timely, trusted, and evidence-based information:

Facilitated access to health products:

Supported the prevention and treatment of novel diseases via clinical trials and flexible measures. For example:

Fostered engagement and collaboration:

Worked alongside other government departments (e.g., PHAC, PSPC) to advance a whole-of-government approach to adapt to and meet the needs of Canadians. For example:

Enhanced internal services:

Delivered services and commitments during major crises. For example:

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2024-12-17