Budget 1997 Building the Future for Canadians - Budget Main Page -

Fact Sheet

Investing in a Stronger Society: Sustaining and Improving Canada's Health Care System

Canadians want their publicly funded universal health care system preserved because they know it has served them and their families well. The federal government remains committed to the principles underlying the Canada Health Act and to ensuring that Canada's health care system is maintained. At the same time, the government is well aware that changes are needed.

The National Forum on Health

Launched by the Prime Minister in October 1994, the National Forum on Health was set up to advise Canadians on changes needed to improve our health care system. The Forum released its report on February 4, 1997. Among its conclusions is the finding that Canada's health care system is fundamentally sound and adequately funded, but that resources could be used more effectively and efficiently.

The report calls for funds to be made available, for a limited period, to aid in the transition to new and better ways of meeting Canadians' health care needs, including ways of ensuring that doctors and other caregivers have the best possible information readily available to them when they make decisions on how to treat patients.

The 1997 budget responds positively to the Forum's recommendations and provides $300 million over the next three years for initiatives outlined below.

Health Transition Fund

A total of $150 million over the next three years will be allocated to provinces to help them launch pilot projects to investigate new and better approaches to health care delivery. Projects could include, for example, better ways to provide medically necessary drugs and home care services. Funds will be allocated to provinces and territories on an equal-per-capita basis; decisions regarding expenditures will be made jointly by Canada's ministers of health.

Canada Health Information System

An additional $50 million over the next three years will be put in place to launch a new Canada Health Information System. This will ensure that providers of medical care have access to the best medical information, including the latest developments regarding medical treatments.

Programs for healthier children

The National Forum on Health calls for stronger community-based programs and emphasizes the importance of prevention. It also states that the best health investment we can make for the future is to improve the health and well-being of our children today.

The 1997 budget increases resources by $100 million over the next three years for two community-based programs that benefit children at risk -- the Community Action Program for Children (CAPC) and the Canada Prenatal Nutrition Program (CPNP):

• the CAPC supports hundreds of community groups in their efforts to address the developmental needs of young children at risk; and

• the CPNP helps to ensure the birth of healthy babies among high-risk mothers, including pregnant adolescents and women involved in substance abuse.

Previous measures

The health measures proposed in the 1997 budget build on important steps the government has already taken to facilitate changes that will strengthen health care.

• The 1996 budget allocated $65 million to launch a new Health Services Research Fund which supports practical research on the delivery and quality of care provided to Canadians.

• Under legislation enacted last year, the provinces are provided with predictable and assured funding under the Canada Health and Social Transfer (CHST). CHST entitlements will be maintained at a stable level of over $25 billion annually. A floor provision guarantees that the cash portion of the transfer will never be less than $11 billion.

• The government has fulfilled a number of commitments in health, including the Centres of Excellence for Women's Health, the Aboriginal Head Start Program and the Canada Prenatal Nutrition Program.

In addition, the government has moved ahead in critical areas such as new and more effective tobacco legislation and enhancing the safety of the blood supply.

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