Health ministers warn of federal funding ‘fiscal cliff’

Provincial and territorial health ministers planned an emergency meeting Tuesday to press Ottawa for clarity on health funding as bilateral agreements approach expiry and a federal budget nears. Ontario Health Minister Sylvia Jones told a provincial committee the ministers want to know whether the federal government will keep working with them on programs supported by targeted transfers.

Provinces have warned of a “fiscal cliff” if agreements for home care, community care and mental health and addiction services—part of a broader 2023 federal health package—are not renewed after March 2027. Jones said the money funds ongoing programs and services, not one-time capital projects, and cited hundreds of millions of dollars in federal support tied to provincial programming. Premiers raised similar concerns after a Council of the Federation meeting in July, seeking sustained five-per-cent growth in the Canada Health Transfer.

A spokesperson for federal Health Minister Marjorie Michel said she is prepared to discuss a strong, sustainable public system at a meeting next month, noting first ministers directed finance and health deputies to work on long-term funding after July. The Canada Health Transfer’s guaranteed minimum five-per-cent annual growth is scheduled to revert to a three-per-cent floor after 2027-28.