During a meeting led by Manitoba Health Minister Uzoma Asagwara, ministers from across the country expressed concern over what they describe as three looming health-care funding “fiscal cliffs,” including the scheduled expiry of $1.2 billion in annual federal funding for home care, community care, mental health and substance-use services on March 31, 2027.
Ministers say those federal investments have helped provinces and territories expand mental health supports, improve addiction treatment programs and reduce avoidable admissions into long-term care facilities over the past decade. They argue failing to renew the funding would jeopardize vital services relied upon by Canadians and put thousands of health-care jobs at risk.
The group also called on the federal government to maintain at least a five per cent annual growth rate for the Canada Health Transfer beyond March 2028, saying stable long-term funding is needed to meet growing demand for care.
Provincial and territorial leaders say new economic analysis from the University of Toronto shows the health investments have generated returns that exceed the federal government’s annual spending, while also improving health outcomes and workforce participation.
The federal government was invited to participate in the discussions but declined, according to the ministers.
Health ministers say the potential loss of funding would amount to the largest reduction in federal health-care support in a generation and could significantly affect patients, caregivers and front-line workers across the country.
The issue is expected to remain a major focus when provincial and territorial health ministers gather in Winnipeg later this month, with officials seeking assurances from Ottawa that the funding will continue beyond current agreements.
