Community, Commentary and Curriculum
for Massage Therapists

Health Care: Are We In or Are We Out?
Posted: September 29, 2008    Feedback comment@mtcoach.com

Originally in this segment I was going to report on the declining manufacturing centres and effects on extended health benefits, and the obstacles in working with auto insurance and WSIB.  However, since the Canadian federal election is this month (and the U.S. Election for our American neighbours in November) I thought it apropos to talk about government impact on your massage practice.

Canadian Manufacturers and Exporters and the Retail Council of Canada are strongly urging the government to harmonize government sales tax (GST) and provincial sales tax (PST).  This already exists in a number of provinces, and means that massage therapy services of therapists earning above $30,000/year in much of Canada would be subject to 13% taxes.

Massage Therapy services are not exempt because it does not meet the criteria of a) covered under provincial medicare in two or more provinces or b) regulated in 5 or more provinces (we currently have 3 regulated provinces).

"Harmonization of the provincial retail sales taxes (PST) with the GST in the remaining provinces of British Columbia, Manitoba, Saskatchewan, Ontario, and Prince Edward Island may be emerging as a real possibility. Some commentators have suggested that the likelihood of some form of harmonization in those provinces in the next two to three years has been crystallized by a combination of political and economic factors--the rise in the Canadian dollar, the challenges faced by Canadian manufacturers and exporters, and GST rate reductions."¹

What does this mean for massage practitioners?  The client/patient will pay more, possibly affecting their utilization of massage therapy.  In Canada comparable services - chiropractic and physiotherapy - are exempt from GST & PST, which puts massage therapy at a decided market disadvantage.

I suspect many therapists would be afraid to hike their rates and will instead absorb the tax into existing fees...reducing their profit.  A direct impact to their bottom line.

In his commission’s famous report, “Building on the Future of Health Care in Canada”, Roy Romanow outlines a number of changes to preserve and rebuild the health care system.  Romanow makes particular reference to investing in health care providers, and the need for integrated teams in providing care. 

 “One of the best ways of ensuring that health care providers are able to work effectively in new, more integrated settings is to begin with their education and training.  Education programs should be changed to focus more on integrated, team-based approaches to meeting health care needs and service delivery.”³

Romanow’s recommendations focus on rural and remote access, diagnostic services, removing obstacles to primary health care, home care and catastrophic drug coverage.  Massage therapy is not mentioned in this 392 page report. 

In The ABC’s of Allied Health Professionals, a publication of the Niagara Health System (NHS), a large number of health professional vocations are identified and described as working within the health care system.  Audiologist, biomedical technologist, chiropodist, kinesiologist, pharmacist, physiotherapist and psychotherapist are some of the professions highlighted and described.  The publication cites “there are currently 500 OPSEU members of the Hospital Professional Division working within the NHS”.  Massage therapist is not listed among them.

In 2004, chiropractic³ and physiotherapy services were de-listed from the OHIP (Ontario medicare) funding schedule.  It appears the primary populations massage therapists serve – rehabilitation, spa services, the treatment of physiological stress and occupational strain – will not be supported by provincial government health care funding.*

* the Green Party supports expanding provincial health care funding to include alternative medicine.  Green Party Leader Elizabeth May pictured here.

If the massage therapy industry does not take steps to be included in the primary health system, it will continue to rely on patients that pay out-of pocket with after-tax dollars.⁴  This works fine in strong economic times, but can be significantly affected in economic down-turns.

In our next segment, we look at the stability of extended health care benefits, auto insurance and worker's compensation.

© 2008, Donald Q. Dillon, RMT.  All Rights Reserved.

No part of this article may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, recording or otherwise, without the prior written permission of the author.

Feedback comment@mtcoach.com

1 http://www.ctf.ca/articles/News.asp?article_ID=3550
2 Romanow, R: Building on Values: The Future of Health Care in Canada.   November 2002.  Executive Summary, p xxvii
3 http://www.chiropractic.on.ca/ChiropracticCoverage/CoverageOverview.aspx
4 Dillon, D: Looking into the Future: Trends Affecting the Massage Therapy Industry in Ontario.  Body Politic, Vol 2, # 3  pp 6-8

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