Skip to main content

Will Ontario PCs join call for ten year federal health funding deal?

Ontario's health minister says she's concerned that there's still no commitment in yesterday's federal budget about long-term funding for health care, the Canadian Press reports.  Deb Matthews says the budget was a missed opportunity for the Conservatives to signal that they're willing to hammer out a new 10-year accord with the provinces.


The cash portion of the Canada Health Transfer delivers about $10.7 billion to Ontario for health care every year, covering about 23% of total provincial healthcare spending. With the six percent escalator (and some recent improvements to the funding formula) this has increased funding to Ontario health care by about $700 million per year. 


So this is big money - -and without the increases, public health care will be in big trouble.    


Under pressure during the election the federal Conservatives promised to continue to increase health-care spending by six per cent (proving the ability of people to put pressure on politicians during elections!).


But the Conservatives stayed vague and thus were able to limit their promise to a minimum of two years after the current agreement expires in 2014. 
  
Matthews says the provinces need a longer commitment in order to make long-term plans that would keep rising costs down.  


Now that the election is over, popular pressure on the federal Conservatives to maintain the health care increases has diminished.  So the Minister's call sounds like a positive step, if she sticks to the 6% escalator.  


The Ontario Progressive Conservatives will finance much of their ballyhooed health care funding promise through the 6% federal funding increases promised until 2016.  


So they must recognize that the escalator is vital to Ontario.  The question is, will they join a call for a ten year deal that maintains the funding escalator?  Or will they clam up in conservative solidarity?



Comments

Popular posts from this blog

Huge cuts in public sector wages predicted

The Ontario Financial Accountability Office (FAO)   says  that, with inflation, real wages in the public sector will decline 11.3% over the three year period  2021/2 - 2023/4 .  This would radically deepen the trend towards lower wages during the last ten years.   The FAO reports that since 2011, the average annual salary for the Ontario public sector employees (defined here as employees of schools, colleges, provincial government, provincial agencies, and hospitals) has increased by $10,385   -- or 1.6 per cent on average annually.  This is the lowest increase of all the sectors and lower than inflation, which averaged 1.8 per cent per year. Over the ten years that would be about a 2% pay cut.   The FAO reports that wage settlements were the lowest in the provincial public sector over the last decade:   Hospital Wages Especially Challenged: The FAO predicts hospital wages will increase even less than in the public sector  -- just ...

Too many public sector workers in Ontario?

Opponents of public services often try to portray the public sector as having grown disproportionately.  In fact, since 1976, the number of public sector employees has not quite kept pace with the population. In 1976, the number of public sector employees in Ontario  as reported by Statistics Canada averaged 830,800.  By 2012, the number had increased to 1,330,700 -- a 60.2% increase.  That sounds like significant growth -- true. But the population has increased  from 8,413,779 in 1976 to 13,505,900 in 2012, a 60.5% increase.   In other words, population growth has run slightly ahead of the growth in public sector employment.     In 1976, close to 10% of the population worked in the public sector.  It stayed pretty much this way until the Mike Harris government came to power when it dipped below 9%.  It returned close to the historical range in the last six years or so, declining in 2012 to below the 1976 averag...

Are health care administrative expenses out of control in Ontario?

The Progressive Conservative government has justified its health restructuring plans with the claim that administrative expenses are much higher in Ontario than in Canada.  When introducing the reforms, health minister Christine Elliott  claimed , “Over the last five years, Ontario has spent 30% more than the Canadian average in administrative expenses on its health care system.”   Elliott did not indicate her source of information. Presumably, however, the Progressive Conservatives are referring to the CIHI simplified and user friendly “ Your Health System ” graphs. Those graphs show “administrative expenses” in Ontario at 5.8% in Ontario while it is 4.5% in Canada.   This CIHI measure is actually fairly narrowly defined. It is the percentage of “the legal entity’s” total expenses associated with the administrative, finance, human resources and communications functional centres. However “the legal entity” used for this estimate is [1] only...