A new report from the Canadian Centre on Substance Use and Addiction (CCSA) reveals that one in 10 people admitted to hospital in Canada are there due to the health impacts of substance use. In 2024, there were nearly 300,000 hospitalizations related to alcohol or drugs, representing 12% of all hospitalizations in the country.
Broad Health Effects
The majority of these hospitalizations were linked to the broad health effects of substance use, including cancers, cardiovascular disease, liver disease, injuries, infectious diseases, and other acute and chronic conditions. Only a small portion were directly related to substance use disorders or addictions.
Healthcare Costs Soar
Healthcare costs associated with substance use reached $16.4 billion in 2024. Alcohol accounted for $7.8 billion, while tobacco contributed $6.8 billion, together making up 90% of the overall costs. Approximately 87% of adults in Canada reported using at least one psychoactive substance—such as alcohol, tobacco, cannabis, opioids, or other drugs—in the past year.
Rising Opioid Costs
Opioid-related healthcare costs are rising the fastest. Although they represent only 4.4% of overall costs, per-person costs increased by about 30% from 2017 to 2024. This likely reflects the impact of the toxic and unstable unregulated drug market, among other factors.
Expert Insights
“To put this into perspective, you do not need to have a substance use disorder for your health to be impacted by substance use,” says lead researcher Dr. Anat Ziv, Research and Policy Analyst at CCSA. “The hospitalizations and the $16.4 billion in healthcare costs show the scope of the costs and harms of substance use, which is essential to know for allocating resources effectively to meet the needs of people in Canada.”
Breakdown of Costs
The $16.4 billion includes:
- Prescription medication: $4.9 billion
- In-patient hospitalizations: $4.6 billion
- Physician time: $3.9 billion
Broader Impacts
“Substance use is more than just a personal issue. It has wide social, economic and healthcare system impacts that are felt throughout communities across Canada,” says Dr. Adam Sherk, Senior Scientist and Special Policy Advisor at CCSA, Scientist at CISUR and Adjunct Associate Professor at the University of Victoria’s School of Public Health and Social Policy. “CSUCH data show the current situation and emerging trends. This allows policy makers and public health officials to develop and prioritize more effective responses to the impacts of substance use on our health.”
Future Reports
In addition to healthcare, the CSUCH project analyzes substance use costs across lost productivity (e.g., short- and long-term disability, premature deaths), criminal justice (e.g., policing, courts, correctional services), and other direct costs (e.g., social assistance, workers compensation). Those reports will be released later this year.
A webinar exploring the data will be held on Wednesday, June 17, 2026.
