New CFNU report says cuts in federal health funding may be larger than feared

A new report by the Canadian Federation of Nurses Unions indicates reductions in federal health transfer payments may be larger than first feared, leading to a greater strain on provinces already struggling to sustain Canada’s public health care system.

“From its inception, health care was intended to be a partnership and a shared responsibility (among) the federal and provincial and territorial governments,” said CFNU President Linda Silas. 

She said the figures in CFNU’s report show the Conservative government is not upholding its end of the partnership, explaining “this puts the Canadian health care system in jeopardy.”

The cuts are the result of changes from the funding model agreed to in the 2004 Health Accord to a new formula imposed by the federal government that is tied to increases in Canada’s GDP. 

The report by economic researcher Hugh Mackenzie, The Canada Health Transfer Disconnect: An Aging Population, Rising Health Care Costs and a Shrinking Federal Role in Funding, argues these changes mean federal support for health care will drop to about 19 per cent from the current range of 22-23 per cent.

“The federal government’s actions pressure provinces and territories to cut spending on health care,” Mackenzie said. “Actions that limit the scope of public health services available to Canadians risk making private options more attractive and undermine public health care in Canada.”

Compared to the Health Accord’s 6-per-cent escalator model, the report found that up to $43.5 billion of health care spending will be cut over the next eight years, based on economic growth projections. This analysis predicts a loss of $10.7 billion in funding annually by 2024-2025.

The report calculates the funding shortfall will result in 59 million fewer home care visits, 2.6 million fewer patients served by primary care centres, 7,500 unfunded long-term care beds, and 24,000 nurses not employed.

The report was delivered to Canada’s premiers at the Council of the Federation annual summer meeting in St. John’s on Thursday.

CFNU represents close to 200,000 nurses and student nurses in most Canadian provinces, advocating for national discussions on such key health priorities as a national prescription drug plan, a comprehensive approach to long-term and continuing care, greater attention to health human resources, and federal engagement on the future of public health care. UNA is a member of CFNU.

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