It’s the Economy… And Some Health Care
Seeking to turn the channel on the controversial Greenbelt saga, today Finance Minister Peter Bethlenfalvy tabled Ontario’s Fall Economic Statement.
Given the troubling economic times across the country, Minister Bethlenfalvy was quick to point out that this fall’s economic statement is NOT a “mini-budget,” but rather a fiscal update with targeted investments that will allow the government to continue to implement its plan to build Ontario while keeping a watchful eye on the provincial treasury.
A quick snapshot
Despite what is expected to be another busy respiratory virus season looming, the economic statement didn’t include any major new health care investments. Instead, it focused heavily on tackling Ontario’s affordability crisis. As ongoing conflicts in Ukraine and the Middle East, as well as sky-high inflation on the home front, continue to have a detrimental impact on Ontarians, Minister Bethlenfalvy announced a number of measures to ease the financial burden, such as the extension of the provincial gas tax cut for another six months. Additional supports to open up Ontario’s critical minerals sector were also included – an area the province is depending on to boost Ontario’s economy for years to come.
While health care didn’t feature prominently in the economic statement, there were some noteworthy initiatives. Ontario announced earlier in the week it will lower the age of the eligibility for breast cancer screening from 50 to 40. The government also committed to introduce legislative changes aimed at strengthening Ontario’s participation in the national lawsuit seeking damages related to the ongoing opioid crisis. Unfortunately, these few announcements are unlikely to be enough to satisfy the many calls across the health system for greater investment to address ongoing staffing shortages and hospital capacity challenges that are likely to become front page news again over the coming months.
What does this mean for health care in Ontario?
In a fall economic statement that included few flashy new investments, the winner within the health system has to be long-term care. On Wednesday, Housing Minister Paul Calandra and Minister Bethlenfalvy announced the government’s intention to remove Ontario’s share of the HST from purpose-built rental housing. Included in this broad envelope are long-term care home developments under construction between September 2023 and December 2035. Long-term care also scored big with the creation of an Ontario Infrastructure Bank that will support capital costs related to the province’s lofty commitment to add the 30,000 additional long-term care beds by 2028, and to upgrade 28,000 more.
Surely to be disappointed by today’s fall economic statement are hospitals across the province who were hoping for some relief for ongoing development and redevelopment projects. As the economy continues to spiral, the costs continue to rise for the numerous hospital capitals projects committed to by the province. Pressure continues to mount for these hospitals to be creative with their planning and rethink what their project may look like. Government has indicated that hospital capital projects will not be eligible for relief through the Ontario Infrastructure Bank at the present time. This will do little to calm the concerns of hospitals who have pleaded for much-needed support from Queen’s Park.
With the fall economic statement in the rear-view mirror, all attention now turns to the spring budget. Ontario has indicated it remains committed to the implementation of Your Health Plan – the government’s ambitious strategy to create more connected and convenient care for Ontarians. Given the province’s shaky economic footing, this will require significant innovation and collaboration among all stakeholders in the health system in the months ahead.