One of the major differences between the U.S. and Canadian health care system is the payment system. In the United States, physicians are paid more for doing more, and the return on their time is higher if they perform a procedure than if they use their cognitive skills. Because of the fact that procedures often require hospital care, this approach translates into higher expenditures for hospital care. In Canada, Physicians operate under a system of free schedules and overall provincial limits on health spending, and they have no incentive to increase the number of procedures. In Canada patients are virtually fully insured. There are also no deductibles or copayments. Canadian physicians are mostly reimbursed on a fee-for-service basis. There are also very little use made of the prepaid group practices that have grown so rapidly in the United States. Another major difference is the fact of the government sanctions causing Canadian physicians to limit their use of tests and procedures. The biggest difference between Canada's health care system and the U.S. health care system is that in Canada most of the funds for health care come from a single source. Canada's hospitals also have budgets which are set by the government causing adiministrators, physicians or patients to limit the amount that is to be spent. Canadians receive fewer health services than Americans, yet there is no discernable difference in the infan mortalitly and life expectancy statistics of the two nations. If there are no discernable differences, why are the Americans paying mor for the diversity and the extra services. But, on the other hand, would Canadians want a shorter stay, and an increase in tests and procedures, if they had the choice. Which system is actually better. The system that is better is the one that the specific society wants and adapts to.