Health spending is growing faster than Ontario’s economy

Health care is something we all cherish. In Ontario, we are fortunate to have one of the best health care systems in the world and some of the finest health care professionals.

Since 1995, the Mike Harris government has invested in Ontario’s long-term care facilities, in community-based services, in health-promotion and disease prevention programs, in nursing initiatives, in mental health reform and in drug programs. This year funding to hospitals increased to $8.4 billion -- this is just one example of the investments we have made.

Other examples of our investments include: providing $375 million in annual funding to create new permanent nursing positions across all sectors; continuing education for nurses, investing $10 million annually to create 106 nurse practitioner positions and; an aggressive retention and recruitment strategy for nurses.

The province also proclaimed the Expanded Nursing Services for Patients Act which legitimizes the role of Primary Care Nurse Practitioners and improves access to primary care for patients.

We want to ensure Ontarians have access to quality healthcare, where and when they need it and at every stage of their life. Consequently, the Harris Government will be increasing healthcare spending for the sixth consecutive year. Once again, health spending will grow faster than the economy.

Our government has made significant progress in modernizing the province’s health system since taking office. However, there is still much more to do.

Over the past five years, healthcare spending has increased by 27 per cent -- 19 per cent in the last two years alone. Double-digit increases to healthcare are no longer sustainable. To increase spending without continuing to improve quality is unwise, and to increase spending in excess of economic growth is unsustainable.

If healthcare spending were to continue increasing at the current rate,  in five years health spending would consume 60 per cent of the Ontario Government’s operating budget -- up from 44 per cent today and 38 per cent since the Harris team was first elected. By simply throwing more money at our healthcare system, we are unable to provide the necessary funds to other priorities such as job creation, education and tax relief.

This spending is occurring at a time when the federal government has cut the Canada health and social transfers to new lows. Historically, the healthcare system was funded 50-50 by the federal and provincial governments. Today, Ottawa’s share of total provincial-territorial spending sits at 12 per cent.


While our government is committed to a healthcare system that puts patients first, it is evident tough decisions and responsible choices are needed not merely to sustain Canada’s healthcare but to save it. It is time the federal government step up to the plate and fulfilled its obligation of 50 per cent funding of our health system.


In order to save Ontario’s healthcare system we need innovation, new thinking and accountability. There needs to be an open, national discussion on the future of healthcare. The province wants to be a part of a dialogue that is broad enough to identify real, lasting solutions to the accountability crisis.

We will be moving forward to ask patients, doctors, nurses, hospital administrators and all Ontarians with an interest in the future of the health care system to identify reforms and to seek consensus on the best way to allocate the billions we spend annually on our healthcare system.