Canada Reaches Agreement with Newfoundland and Labrador and Nova Scotia on Funding for Health Accord

OTTAWA, Dec. 23, 2016 /CNW/ – Canada's public healthcare system is a source of pride, and the Government of Canada as well as the Governments of Newfoundland and Labrador and Nova Scotia are committed to ensuring it is there to meet the needs of Canadian families. 

Today, the federal government and the provincial governments of Newfoundland and Labrador and Nova Scotia agreed to new targeted federal funding over 10 years for investments in home care and mental health care. The two provinces join New Brunswick in signing an accord with the Government of Canada to support transformative change and deliver better health care for Canadians in these priority areas.

Over the next 10 years, the federal government will support better home care, including addressing critical home care infrastructure requirements, by providing:

  • Newfoundland and Labrador with $87.7 million; and
  • Nova Scotia with $157.0 million.

Over the same period, it will support mental health initiatives with new funding of:

  • $73.0 million for Newfoundland and Labrador; and
  • $130.8 million for Nova Scotia.

Under this funding agreement, each province will be getting its respective share of the investment in home care and mental health offered by the federal government at the Finance and Health Ministers' Meeting on December 19, 2016. The two are the latest jurisdictions to pursue a new agreement for health care funding with the federal government. Funding will be made available as of April 1, 2017.

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 those of Newfoundland and Labrador and Nova Scotia will work out the details of accountability and reporting, consistent with the pan-Canadian approach envisaged in the federal funding offer of December 19. 

As a result of these investments, it is expected that access to 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 on December 19. 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.


"Newfoundland and Labrador has the fastest aging population in the country and securing additional federal funding is a priority for my government. During the course of our conversations with the federal government we have focused on our specific needs surrounding senior care and mental health. These investments demonstrate that the federal government recognizes the specific cost pressures that the aging population and mental health issues place on our province. We look forward to continuing the discussion with the federal government on these two priority areas."
The Honourable Dwight Ball
Premier of Newfoundland and Labrador

"We are pleased to have reached an agreement with the federal government that reflects the challenges Nova Scotia faces. The targeted federal funding in mental health and home care will improve the way we deliver care to Nova Scotians."
The Honourable Stephen McNeil
Premier of Nova Scotia

"We are committed to working with our provincial and territorial counterparts to improve health care for Canadian families, including mental health and seniors' care. This agreement represents a major step toward better health care and health outcomes across the region, and I want to thank Newfoundland and Labrador and Nova Scotia for their vision and leadership." 
The Honourable Jane Philpott
Minister of Health

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SOURCE Health Canada