Premiers say Ottawa is shortchanging them on health care, but their complaints aren’t based on reality

The health care system’s problems are more structural than fiscal, an economist says, citing the lack of digital technologies as an example of potential cost efficiencies being ignored

Premiers are complaining, once more, that Ottawa is shortchanging them on paying for health care.

As the chart below shows, the CHT accounted for a smaller share of national health spending in 2022 than it has since 2014, apparently a validation of the provinces’ argument that Ottawa is not paying its fair share. More significant, however, is the exclusion of equalization payments sent to several provinces, amounting to $21.9-billion in the current fiscal year. That program is explicitly designed to help equalization-receiving provinces with the cost of services such as health care, although payments are not compartmentalized.

As this second chart shows, six out of 10 provinces are projecting that their health care spending will rise faster than the CHT. Those figures are based on provincial budgets, and aren’t as precise as those that CIHI will eventually issue.)

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