Newfoundland, Nova Scotia reach own health-care funding deals with Ottawa

Two days ago, Finance Minister Bill Morneau reached out with an offer that provinces estimate would leave them better off than had they agreed to Monday’s offer. The Nova Scotia source said the money cannot be spent on wages or benefits.

The source said Prince Edward Island was not ready to sign a deal, leaving it the odd man out in Atlantic Canada.

Health Minister Jane Philpott said in an interview that federal officials are still working the phones to negotiate one-on-one with the remaining provinces and are “not walking away from the needs of Canadians.”

The tactic has driven a wedge between provinces. Earlier this week, they seemed united in their opposition to the federal proposal, but three provinces including New Brunswick have now broken ranks.

In an interview Friday, Quebec Premier Philippe Couillard called the Trudeau government’s divide and conquer approach on health care “deplorable.”

He said Prime Minister Justin Trudeau needed to meet with the premiers on health care funding and come to a compromised agreement that will make sure provinces like his can invest in priority areas.

“Let’s think about long term and medium term rather than short term tactical victories, and think about patient interests first,” Couillard said.

Ottawa had previously offered the provinces a 3.5 per cent annual increase health transfer payments and pledged another $11.5 billion over 10 years in targeted funding, primarily for home care and mental health with some of the money set aside for infrastructure work.

The provinces countered with a proposal to increase funding by 5.2 per cent annually.

In the deal announced Friday, the federal government will give Newfoundland and Labrador $87.7 million, and Nova Scotia $157.0 million, for home care over the next 10 years. Over the same period, it will give new mental health funding of $73.0 million for Newfoundland and Labrador, and $130.8 million for Nova Scotia.

Newfoundland and Labrador Health Minister John Haggie said the funding “will not buy transformation in the health care system,” but will help in key areas such as seniors care.

“It will deal with hot button issues. We have the fastest aging population in Canada and just like other jurisdictions, we’re challenged with our youth in terms of mental health and addictions,” said Haggie in an interview.

“So our interests very much line up with the stated aims of the federal money.”

Haggie said the agreement allows for discussion with Ottawa about how the funding will be used in a province with the fastest aging population in Canada.

Nova Scotia Finance Minister Randy Delorey said the cash will help expand mental health and home care services — two areas of particular need in his province, and why they signed on to the deal.

“We wanted to make sure we had a deal that was in the best interest of delivering our health care.”

The money will be made available as of April 1.

Each agreement signed this week includes a clause that ensures three provinces would see a boost in their funding if any other province or territory reaches an agreement with the federal government that contains better financial terms.

“They want to move ahead and make sure that they get money flowing for new areas of targeted funding in seniors care and in mental health,” Philpott said.

“But to be fair to them, we’ve made it clear that if for some reason down the road there are any agreements with other provinces or territories that would offer any additional options that of course we’ll be fair to all provinces and territories in that regard.”

— With files from Aly Thomson in Halifax, and Stephanie Marin in Montreal

Jordan Press and Joanna Smith, The Canadian Press

by Canadian Press

Newfoundland, Nova Scotia reach own health-care funding deals with Ottawa

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