The C.D. Howe Institute says the province's health care system will face growing pressure to reform because of changing demographics.
The Toronto-based think-tank says it has identified a number of areas where the province can make better use of its health care spending.
They include the use of electronic health records, incentives for patients to take more responsibility for maintaining their own health and improved co-ordinated care for patients after they leave hospitals.
The institute says Newfoundland and Labrador is set to age faster than most provinces and the growth of its tax base will slow down, reducing its ability to finance an increase in health costs.
The study to be released Thursday adds that hopes of a federal bailout are false and the challenge of health care spending and taxes is one the province should tackle on its own.
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