A new analysis from the McKinsey Health Institute (MHI) has spotlighted an opportunity that is both a moral imperative and an economic necessity for Canada. Addressing the long-standing health disparity faced by Canadian women could result in seven more healthy days of life per year for every woman, and potentially boost Canada’s economy by $37 billion annually by 2040.
This research serves as a rallying cry for our entire innovation ecosystem. It positions the women’s health gap not as an intractable problem, but as the single largest, most achievable economic opportunity for Canada in the coming decades.
The true cost of the women’s health gap
The human cost of this gap is staggering. MHI finds that Canadian women spend 24 percent more time in poor health and disability than men. For every 100 people, women will experience about 14 years lived with disability, compared with 11 years for men. This systemic disparity affects a woman’s ability to be present, productive, and fully engaged—at home, in the workplace, and in the community—stalling leadership pipelines and diminishing innovation across the country.
While Canada is a top ten global economy, we currently rank as the fifth-worst major economy globally for the women’s health-related economic gap as a share of our projected 2040 GDP. We have the resources, the systems, and the talent to lead, yet we are underperforming. This means closing the gap is not a matter of capacity; it is a matter of choice—a choice to build a stronger economy based on healthier women.
For context, this $37 billion annual gain is significantly higher than the estimated net savings opportunity of $14 billion to $26 billion from using AI at scale in the healthcare system. The impact is massive, sizable, and achievable.
This health gap is driven by three systemic factors: efficacy, care delivery, and data. For decades, medical research centered on a “default male” model, leading to missed diagnoses and slow innovation. The resulting care delivery gaps disproportionately affect women in rural areas and racialized communities. Finally, a lack of disaggregated, longitudinal data continues to hamper targeted innovation and effective policymaking.
This is where the ingenuity of the Femtech Canada community becomes crucial. Our founders, investors, and policymakers are uniquely positioned to lead the charge:
- Innovators are addressing the efficacy gap by creating solutions tailored to female biology.
- Advocates and policymakers are pushing for systems that close the care delivery gap and ensure equitable access.
- Researchers are committed to closing the data gap, generating the insights needed for sustained progress.
Addressing the women’s health gap is not a cost—it is the smartest investment the country can make, one that benefits women, their families, and the nation’s prosperity.
To fully understand the challenges, the provincial variations, and the 14 major actions needed to catalyze this change, we encourage you to read the full report.
Read the full McKinsey Health Institute Report — Closing the women’s health gap: Canada’s $37 billion opportunity