Harper Government Leaves Provinces and Medicare in the Cold

Ritika Goel, January 11, 2012

On December 19, 2011, Jim Flaherty, on behalf of the Harper Government, announced to the provinces that the anticipated 6% annual increase in federal-provincial transfers to health care would end in 2017.¹ Beyond 2017, health care funding will grow based on nominal GDP (total value of goods and services including inflation) or a minimum of 3%.¹ While our immediate instinct is to focus on the numbers, important as they are, part of the story here is not just what happened but how it happened and what that says about the role the Harper Government wants to play in health care in Canada.  

1. The decision was a one-way decree over lunch. Dwight Duncan, Ontario’s finance minister, stated. “He put the document in front of us and said, ‘This is the way it's going to be,’ We all kind of paused; we all looked at each other.”² This approach does not show any willingness to work with the provinces on our health care problems and instead suggests the federal government has no interest in having a conversation.

2.The Canada Health Accord is an opportunity for leadership in health care. The 2004 Canada Health Accord included a plan for reducing wait times and real reductions have resulted from this concerted organized effort with federal leadership. The Harper government could take this opportunity to lead a national pharmacare scheme to increase our purchasing power and decrease drug costs for the country. They could also choose to invest in public health and preventive measures and make these national priorities. Any way you look at it, reducing this conversation to a simple money transfer is an opportunity lost.

3. It is the federal government’s responsibility to hold provinces to the Canada Health Act. The Canada Health Transfer gives funds from the federal government to the provinces with the assumption that they must follow the principles of the Canada Health Act, which the federal government is supposed to ensure. The Harper Government consistently suggests it does not want to be involved in health care and wishes to leave this matter to the provinces. They may state that they support a strong publicly-funded health care system, but they have also repeatedly mentioned allowing the provinces to ‘experiment’ with delivery, which will likely mean more private, for-profit health facilities will flourish. Not taking this opportunity to discuss accountability with the provinces shows a lack of commitment to upholding the Canada Health Act.

There is much speculation as to how the cut in anticipated funding increases will impact quality of care and a potential push for for-profit delivery. What will happen remains to be seen, but one thing is clear – the Harper Government has shrugged off its responsibility in maintaining and strengthening Medicare in Canada.  

¹ Payton, Laura. “Premiers split over Flaherty health-funding bombshell.” CBC News. 19 Dec 2011. 11 Jan 2012. http://www.cbc.ca/news/politics/story/2011/12/19/pol-finance-minist...

2 Bailey, I, Curry, B. “In surprise move, Flaherty lays out health-spending plans till 2024.” 19 Dec 2011. 11 Jan 2012. http://www.theglobeandmail.com/news/politics/in-surprise-move-flahe...

Read more about the Canada Health Transfer and Flaherty’s Decision:

6 per cent solution for better health care

http://www.thestar.com/opinion/editorialopinion/article/1105658--6-...

Stephen Harper’s hands-off stance could signal end to national health-care system: Romanow

http://news.nationalpost.com/2012/01/08/stephen-harpers-hands-off-s...

Ottawa’s health plan: When money misses the point

http://www.theglobeandmail.com/report-on-business/economy/economy-l...