- Major Federal Transfers -

Federal Investments in Support of the 10-Year Plan to Strengthen Health Care

• In addition to the 10-year Plan to Strengthen Health Care, Budget 2007 took action to help reduce wait times and to modernize Canada's health system through targeted investments.

Federal Investments in Health Care

• Building on the commitments in the 2000 and 2003 Health Accords, all First Ministers signed the 10-Year Plan to Strengthen Health Care on September 16, 2004.
• In support of the 10-Year Plan, the Government of Canada committed $41.3 billion in new federal funding for provinces and territories over 10 years (2004-05 to 2013-14).
• The new funding will be used to increase ongoing federal health support provided through the Canada Health Transfer (CHT); meet the outstanding financial recommendations in the report of the Commission on the Future of Health Care in Canada (the Romanow Report); address wait times to help ensure Canadians have timely access to essential health care services; and provide funds for medical and diagnostic equipment.
• The 10-Year Plan also addresses the unique challenges facing the delivery of health care services in Canada's North, including the costs of medical transportation.
• The 10-Year Plan includes an agreement to develop evidence-based benchmarks, comparable indicators, clear targets and transparent reporting to the public on access to health care. All governments agreed to report to their residents on health system performance including the elements outlined in the 10-Year Plan.
• In addition, the legislation that implemented the funding commitments of the 10-Year Plan provides for a Parliamentary review by March 31, 2008 and March 31, 2011 on progress in implementing the 10-Year plan.

$41.3 Billion in New Federal Funding

• This $41.3 billion in new funding is allocated to provinces and territories on an equal per capita cash basis in order to ensure equal support for all Canadians regardless of their place of residence (see Table 1).
• An automatic escalator of six per cent annually has been applied to the new CHT base of $19 billion since 2006-07.
• Further, an additional $5.5 billion was invested over a 10-year period to help reduce wait times.

• Funding for the first five years, a total of $4.25 billion, was provided through a third-party trust. Provinces and territories have the flexibility to draw on this funding according to their respective jurisdictional priorities to meet their wait times commitments.

• Beginning in 2009-10, funding will be provided through a Wait Times Reduction Transfer of $250 million annually, to be used primarily for both ongoing support for health human resources and tools to manage wait times.

• The Government of Canada also provided provinces and territories with a further $500 million for medical equipment in 2004-05.

Table 1: Total Increased Transfer Support for Health: By Category
2004-05 to 2013-14

	Canada Health Transfer
	Short-term Increase	On-going Base Increase	Wait Times Reduction	Medical Equipment	Total
	($ million)
Newfoundland and Labrador	48	481	86	8	623
Prince Edward Island	13	134	23	2	172
Nova Scotia	87	896	157	15	1,156
New Brunswick	70	717	126	12	925
Quebec	707	7,461	1,287	118	9,573
Ontario	1,166	12,647	2,146	194	16,152
Manitoba	109	1,151	200	18	1,479
Saskatchewan	93	942	166	16	1,217
Alberta	303	3,426	563	50	4,342
British Columbia	395	4,328	728	66	5,516
Yukon	3	30	5	0.5	39
Northwest Territories	4	42	7	1	54
Nunavut	3	30	5	0.5	39
Total	3,000	32,285	5,500	500	41,285
Note: Based on equal per capita allocation. Figures are based on Statistics Canada population estimates for 2007-08 and Finance Canada population projections for 2008-09 to 2013-14 and are subject to revision upon periodic release of Statistics Canada official population estimates. Totals may not add due to rounding.

Budget 2007 Targeted Investments

• Supporting the objectives in patient wait times reduction are the following investments made in Budget 2007:

Patient Wait Times Guarantee Trust
Provincial/Territorial Allocation

	Base Funding	2007-08	2008-09	2009-10	Total
	($ millions)
Newfoundland and Labrador	10	5.9	5.9	5.9	17.7
Prince Edward Island	10	4.0	4.0	4.0	12.1
Nova Scotia	10	8.1	8.1	8.0	24.2
New Brunswick	10	7.1	7.1	7.1	21.3
Quebec	10	42.3	42.2	42.1	126.6
Ontario	10	68.3	68.5	68.6	205.4
Manitoba	10	9.3	9.3	9.3	27.9
Saskatchewan	10	8.3	8.3	8.2	24.8
Alberta	10	20.6	20.7	20.7	62.0
British Columbia	10	25.4	25.5	25.5	76.4
Yukon	4	1.5	1.5	1.5	4.5
Northwest Territories	4	1.5	1.5	1.6	4.6
Nunavut	4	1.5	1.5	1.5	4.5
Total	112	204.0	204.0	204.0	612.0
Note: Base funding of $112 million is allocated over 3 years, $10 million per province and $4 million per territory; remaining funding of $500 million is allocated on an equal per capita basis over three years. Totals may not add due to rounding.

• Budget 2007 also provides additional investments in health through a new Immunization Trust:

Immunization Trust
Human Papillomavirus Vaccine
Equal per Capita Provincial/Territorial Allocation

	2007-08	2008-09	2009-10	Total
	($ millions)
Newfoundland and Labrador	1.5	1.5	1.5	4.6
Prince Edward Island	0.4	0.4	0.4	1.3
Nova Scotia	2.8	2.8	2.8	8.5
New Brunswick	2.3	2.3	2.3	6.8
Quebec	23.4	23.3	23.3	70.0
Ontario	39.0	39.1	39.2	117.2
Manitoba	3.6	3.6	3.6	10.8
Saskatchewan	3.0	3.0	2.9	8.9
Alberta	10.4	10.4	10.4	31.2
British Columbia	13.2	13.3	13.3	39.9
Yukon	0.1	0.1	0.1	0.3
Northwest Territories	0.1	0.1	0.1	0.4
Nunavut	0.1	0.1	0.1	0.3
Total	100.00	100.00	100.00	300.00
Note: based on equal per capita allocation. Totals may not add due to rounding.

- Major Federal Transfers -