Executive Council
Health and Community Services

December 23, 2016

A Strong Health Care System

Newfoundland and Labrador Reaches Agreement on Funding for Canadian Health Accord

Today, the Government of Newfoundland and Labrador agreed to new targeted federal funding over 10 years for investments in home care and mental health care. The province joined with Nova Scotia today in announcing an accord with the Government of Canada to support change and deliver improved health care for Canadians in these priority areas.

“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 getting recognition with regards to 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 place on our province. It is important for me to state that if any other province or territory reaches an agreement with the Federal Government that includes better financial terms, our province will have those terms applied to us as well. We look forward to continuing the discussion with our federal counterparts on these priority areas.”
- The Honourable Dwight Ball, Premier of Newfoundland and Labrador

Over the next 10 years, the Federal Government will support home care and mental health initiatives in Newfoundland and Labrador through combined funding of $160.7 million ($87.7 million for home care and $73 million for mental health initiatives). This funding will start flowing to the province as of April 1, 2017.

“We are pleased with this new commitment from the Federal Government and took the time necessary to analyze the financial impacts of this agreement on the Province of Newfoundland and Labrador. This represents a great first step in the conversation to help ensure the sustainability of health care funding for the residents of the province.”
- The Honourable Cathy Bennett, Minister of Finance and President of Treasury Board

In the coming weeks, the Federal and Provincial 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. Newfoundland and Labrador and the Federal Government will work out the details of accountability and reporting, consistent with the pan-Canadian approach envisaged in the federal funding offer of December 19, 2016.

“Now that we have secured these federal investments, we can move forward in improving some of our priority health care services. Funds will be targeted towards mental health, home care and palliative care services. I look forward to working with Minister Philpott in finalizing our agreement early in the new year.”
- The Honourable John Haggie, Minister of Health and Community Services

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.

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Media contacts:

Michelle Cannizzaro
Director of Communications
Office of the Premier
Tansy Mundon
Director of Communications
Department of Finance
709-729-6830, 693-1865
Emily Timmins
Media Relations Manager
Department of Health and Community Services

2016 12 23           5:35 p.m.