Lost federal funding puts pressure on B.C. health care
Province braces for millions of dollars in cuts as it struggles to keep annual costs below three per cent threshold
VICTORIA — B.C. was disappointed by the lack of money and detail for health care in last week’s federal budget, says the province’s health minister.
Terry Lake said Wednesday that he had expected to see the federal government mention the shared health agenda that federal, provincial and territorial leaders had agreed upon in December, along with some of the $3 billion over four years that the federal Liberals had promised for improved home care.
“I guess I’m somewhat disappointed we didn’t see any reference to that in the budget,” Lake said in an interview. “I think from their point of view, they are waiting for us to develop the shared agenda a little more completely before committing funding. But you can’t really have one without the other.
“It’s hard for our ministries to put in the effort and work required to create a shared agenda if we don’t see a commitment of money there. So far, other than the platform, we haven’t seen it come to reality in a budget.”
B.C., like many other provinces, is bracing itself for millions of dollars in cuts to the growth of federal health transfers from Ottawa that start in 2017. The amount of federal health money had been increasing annually by as much as six per cent, but the Conservatives moved to curtail it to the rate of economic growth, which is as little as three per cent. That change means $3.4 billion in lost federal health funding for B.C. over the next seven years, government estimates.
Last week’s budget by the new federal Liberal government did not increase the growth of Ottawa’s share, though the party has promised to consult with the provinces on a new funding formula.
Health care remains the single most expensive item for the B.C. government, and eats up almost 40 per cent of the $47-billion provincial budget.
Ottawa is set to provide $4.7 billion in the coming fiscal year, which pays for 24 per cent of B.C.’s health care costs. But as B.C.’s health costs continue to climb, Ottawa’s overall share will decrease, said Lake, adding that B.C. doesn’t expect Ottawa to return to six per cent annual growth in health transfers, and understands it — like the provinces — is trying to rein in the cost of health care.
But the province does want the federal government to adjust payments to reflect demographics, so that provinces with more seniors get more money.
The looming federal funding changes put added pressure onto a health care budget that B.C. has been struggling to curtail to below three per cent annual growth, and which, critics say, is being starved of cash.
NDP critic Judy Darcy said B.C. should be speaking out strongly in Ottawa for a health care accord, home care system and national Pharmacare program.