ARCHIVED - Federal Health Investments

Date: February 5, 2003

Total increases to the CHST, including scheduled increases and the extension to 2007-08, will be $9.5 billion over the next five years. In addition, the federal government will add an immediate infusion of $2.5 billion for health to be drawn by the provinces as they require. This means that transfers available for health will increase by $12 billion over the next 5 years.

To increase accountability and transparency, the federal government commits to create a separate Canada Health Transfer (CHT) within the year which will include the notional health component of the CHST and will provide predictable annual increases in 2008 and beyond.

In addition, the federal government will invest $16 billion in a five-year reform fund for primary health care, home care and catastrophic drugs. The fund will start with $1.0 billion in 2003-04 and rise to $5.5 billion by 2007-08. The fund will be provided as a transfer to the provinces and territories. Progress towards achieving the agreed-upon reforms will be reviewed by First Ministers by March 2008. The funding provided through the Health Reform Fund will then be integrated into the Canada Health Transfer.

Transfers will increase by $32.7 billion in the 2008-09 to 2010-11 period.

The federal government will also establish a $1.5 billion diagnostic/medical equipment fund, will invest $600 million in health information technology for electronic health records, telehealth and information infrastructure and will provide $500 million for research hospitals through the Canada Foundation for Innovation (CFI).

Further, the federal government will invest $1.6 billion over five years in direct health accord initiatives, including patient safety, Canadian Agency for Drugs and Technologies in Health (CADTH), Employment Insurance (EI) compassionate care, GST rebate for health institutions, a national immunization strategy, and governance and accountability.

In addition, the federal government will fund $1.3 billion over the next five years in a series of federal health priorities to be set out in the Budget.

Finally, the federal government is committing $1.3 billion to the improvement of Aboriginal health, the details to be worked out in consultation with Aboriginal peoples.

Summary of Increases in Federal Investments for Health

Over the next three years: $17.3 billion
Over the next four years: $25.3 billion
Over the next five years: $34.8 billion
Over the next eight years: $70.1 billion