This IDC Health Insights Perspective examines Canada's transformation in the healthcare industry with a focus on cost containment. Although growth in healthcare spending has slowed over the past five years, it is still higher than the growth in GDP and higher than other provincial budgetary expenditures. Significant cost reduction will be very difficult without major changes to healthcare delivery models that drive increased value for money spent. Ultimately, this will require objective analysis of the services being delivered as well as where and how and by whom they are being delivered. The use of information technology to help contain healthcare costs while improving value for money is still in a nascent stage, and there are still many unexplored opportunities. IT vendors are faced with a situation that requires a two-pronged approach to the market — deal with the here and now at the same time as positioning IT products for what could be a very different future.