Canada Reaches Health Funding Agreement with Prince Edward Island

News Release

January 31, 2017   Ottawa, ON - Prince Edward Island  Health Canada

Canada's public healthcare system is a source of pride. The Government of Canada and the Government of Prince Edward Island are committed to ensuring it is there to meet the needs of Canadian and Island families.

Today, the federal government and the Government of Prince Edward Island agreed to new targeted federal funding over 10 years for investments in home care and mental health care. The province joins New Brunswick, Newfoundland and Labrador, Nova Scotia, Yukon, Northwest Territories, Nunavut and Saskatchewan in accepting the Government of Canada's offer of investments to deliver better health care for Canadians and Prince Edward Islanders in these priority areas.

Over the next 10 years, the federal government will provide Prince Edward Island with an additional $45.1 million:

  • $24.6 million for better home care including addressing critical home care infrastructure requirements; and
  • $20.5 million in support of mental health initiatives.

Under this funding agreement, the province will be getting its respective share of the investment in home care and mental health outlined by the federal government at the Finance and Health Ministers' Meeting in December. The province is the latest jurisdiction to pursue a new agreement for health care funding with the federal government, which will begin in the 2017-18 fiscal year.

In the coming weeks, governments will develop performance indicators and mechanisms for annual reporting to citizens, as well as a detailed plan on how these funds will be spent, over and above existing programs. The Government of Canada and the Government of Prince Edward Island will work out the details of accountability and reporting, consistent with the pan-Canadian approach envisaged in the federal funding offer of December 19, 2016.

As a result of these investments, it is expected that wait times for mental health services for children and youth will be improved and that the number of patients in hospital who could be supported and better cared for at home or in the community will be reduced.

The targeted investments in home care and mental health care are in addition to the existing legislated commitments through the Canada Health Transfer (CHT), which will continue to grow into the future. This new funding agreement is consistent with the federal investments offered to provincial and territorial governments in December. It would be amended to reflect legislated changes to the CHT in the event of a pan-Canadian agreement consistent with the previous federal offer.


“I am pleased to see that the Government of PEI has accepted our offer today, continuing our shared commitment to improving the health and well-being of all Canadians, specifically in the areas of mental health and home care. I would like to thank Premier MacLauchlan and Minister Henderson for their government's commitment to ensuring that the residents of PEI are able to realize the full potential of these significant investments.

The Honourable Jane Philpott
Minister of Health

“We have been actively engaged in discussions with the federal government and welcome coming to an agreement. The commitment to health funding is essential in meeting the priority needs of Prince Edward Islanders, including in mental health and homecare. We look forward to continuing to work with the federal government on a range of issues and are optimistic about our ongoing discussions aimed at shared investments that meet the social needs of Islanders. ” 

The Honourable Wade MacLauchlan
Premier of Prince Edward Island


Andrew MacKendrick
Office of Jane Philpott
Minister of Health

Mary Moszynski
Acting Director of Communications
Government of Prince Edward Island

Media Relations
Health Canada

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