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

Ford government fails to respond to 72% increase in COVID inpatient days, deepening the capacity crisis

COVID infections continue to drive up hospital costs and inpatient hospitalizations in Ontario. For the most recent fiscal year (April 1, 2022- March 31, 2023) hospital stays related to COVID cost $1.221 billion, according to new CIHI data.   This is about 4% of total hospital spending, creating a very significant new cost pressure beyond the usual pressures of population growth, aging, inflation, and rising utilization.   Costs for COVID related hospitalizations increased 22.2% in Ontario in 2022/23 from the previous fiscal year, rising from $999 million to $1.221 billion.  That rise is particularly notable as the OMICRON spike of late 2021 and early 2022 had passed by the the 2022/23 fiscal year.   The $222 million increase in COVID hospitalization costs came in the same year as the Ford government cut special COVID funding and, in fact, cut total hospital funding by $156 million.     In total, there were 60,653 COVID hospitalizations in Ontario in 2022/3, up from 47,543 in 2021/2. 

More spending on new hospitals and new beds? Nope

Hospital funding:  There is something off about the provincial government's Budget claims on hospital capital funding (funding to build and renovate hospital beds and facilities).    For what it is worth (which is not that much, given the long time frame the government cites), the province claims it will increase hospital capital spending over the next 10 years from $11 billion to $20 billion – or on average to about $2 billion per year.   But, this is just a notional increase from the previous announcement of future hospital capital spending.  Moreover, even if we did take this as a serious promise and not just a wisp of smoke, the government's own reports shows they have actually funded hospital infrastructure about $3 billion a year over the 2011/12-2015/16 period. So this “increase” is really a decrease from past actual spending. Even last year's (2016-17) hospital capital funding increase was reported in this Budget at $2.3 billion - i.e. about 15% more th

The hospital crisis: No capacity, no plan, no end

While Canada has achieved universal public healthcare coverage, that does not mean conservative forces have given up trying to erode that coverage and expand corporate care where it does not currently exist. The battle has become particularly intense in Ontario under the Ford Progressive Conservative government, which is implementing serious cuts to the level of care and moving to bring in for-profit mini-hospitals. Inadequate Staffing.   Less and less of hospital spending is on staff.   Employee compensation as a share of hospital expenditures has consistently shrunk in Ontario. This is not some immutable law of hospital development.  It is in stark contrast with the rest of Canada, where compensation has become a larger share and now accounts for 67.1%. Hospitals in provinces other than Ontario now have 18 percent more staff per capita than hospitals in Ontario. Overall, if Ontario had the same staffing capacity as the other provinces and territories, there would be another 33,778 full t