Expanding opportunities for Ontarians to achieve better health is one of the McGuinty government’s top priorities. Since taking office, the government’s plan to achieve better health care has focused on four key strategies: shortening wait times for key procedures, increasing access to health professionals, promoting wellness and preventing illness, and improving efficiency and accountability.

Building on the investments made to date, this Budget proposes $37.9 billion in health sector spending in 2007–08, a 29 per cent or $8.5 billion increase from the 2003–04 level of $29.4 billion. (See Chart 11.)
In 2007–08, this Budget includes additional funding of:
These new investments build on the results achieved to date, including:

The Ontario Government has invested significantly in transforming the sector to meet patients’ needs and create a sustainable health care system. These investments are focused on four key strategies to achieve better health:
The government has made significant progress on its key priorities and will continue to make important health investments. Spending in the health sector will be $37.9 billion in 2007–08, rising to $39.8 billion in 2008–09 and $41.5 billion in 2009–10. The following details the progress made to date on these priorities and proposed new investments in 2007–08.
Ontario’s Wait Time Strategy improves access to health care and reduces patient wait times in five areas: cancer surgery, cardiac procedures, cataract surgery, hip and knee replacements, and magnetic resonance imaging and computed tomography (MRI/CT) scans. In this Budget, the government is announcing that it plans to add pediatric surgeries to the strategy.
The number of procedures has increased significantly since 2003–04:
From 2003–04 to 2006–07, the Ontario Government invested nearly $1 billion in its Wait Time Strategy, primarily to provide more procedures, improve surgical efficiency, and develop a comprehensive wait time information system to track and monitor wait times. The government also invested in the creation and expansion of hospital facilities. See Section G: Investing in Ontario’s Infrastructure for further details.
Ontario’s Wait Time Strategy is working. Wait times are down for all procedures included in the strategy. Key wait times reductions since 2005:
With this Budget, the government’s Wait Time Strategy would:
Ontarians depend on nurses, doctors and other health professionals across the province to provide care. The government’s innovative health-human-resource strategy, HealthForceOntario, helps facilitate the right mix, supply and distribution of human resources across the province. Key components of this strategy include:
Emergency departments are a critical point of access in the health care system. The government is improving access to emergency care by investing an additional $143 million in 2007–08 through the Emergency Department Action Plan. The plan is:
Primary health care is often the initial point of contact for patients in the health system. The government is transforming and improving the delivery of primary care through FHTs. Family Health Teams consist of doctors, nurse practitioners, nurses, dietitians, pharmacists, social workers and other health providers, who provide comprehensive care, seven days a week.
Preventing Ontarians from getting sick is central to the government’s plan for health care. This is why the government is focusing on healthy and active living, illness prevention and health promotion. Over the long term, these investments will help manage health care costs.
The government created the Ministry of Health Promotion, the first in the history of Ontario, to develop programs to promote healthy and active living. The ministry has implemented several initiatives including:
With this Budget, the government is continuing to prioritize health promotion by:
A strong public health system is important in preventing illness and promoting wellness. The government has demonstrated its commitment to the public health system by:
In this Budget, the government is:
The Ontario Government is implementing innovative strategies to provide health care services and improve patient care, both now and in the future. Innovation includes making the best use of information technology and best practices in accountability and governance.
E-Health involves the introduction of modern information technology that will better connect the entire health care system and improve accountability. Providing the right information at the right time and in the right place will improve outcomes, improve patient safety and make better use of existing health care resources.
Telemedicine is an example of how technology can be used to benefit patients. It provides the capability to virtually connect a patient from a remote or rural area to a health specialist in another city located hundreds of kilometres away. Today, this service is available at 359 sites and reaches more than 23,000 patients.
With this Budget, the government is providing an additional $64 million in 2007–08 to promote its comprehensive e-Health strategy, including:
Improving the way health services are planned, integrated and delivered will improve patient care and allow the cost of services to be managed more efficiently and in a way that is sustainable over the long term.
In 2005, the government created 14 Local Health Integration Networks (LHINs) to work with health service providers and community members to provide an integrated and patient-centred health care system that is focused on local needs. The LHINs will make it easier for patients to gain access to the health services they need because these services will be coordinated locally — in their communities — with all the advantages that result from local awareness. Better service integration and coordination on a community basis will mean better resource allocation.
| Sector | Share of Total LHINs’ Transfer Payment Budget in 2007–08 |
|---|---|
| Hospitals | 71% |
| Long-Term Care Homes | 13% |
| Community Care Access Centres | 9% |
| Community Mental Health | 3% |
| Other | 4% |
| Source: Ontario Ministry of Health and Long-Term Care. | |
The government will continue to work with the LHINs as they build on their planning activities and the role of funding and integrating local health services. The government will work with LHINs to realize the local priorities that the LHINs had identified in their Local Health Strategic Plans through their community engagement efforts. The government will work with LHINs on their financial plans and will monitor and review these plans as part of the government’s annual budgeting process. In addition, accountability agreements between health service providers and LHINs, and between LHINs and the government, will ensure the responsible use of health care resources.
This year, the government worked with hospitals to put the sector on a sound financial footing before LHINs take over funding authority. Towards this goal, the government provided an additional $115 million to help hospitals improve efficiencies and address operational pressures. As well, the ReNew Ontario plan includes funding for the construction of new cancer treatment programs in Barrie, Newmarket, St. Catharines and Sault Ste. Marie, and for the renovation and expansion of the centres in Ottawa and Kingston.
Creation of a sustainable hospital sector goes beyond funding. The government introduced and implemented Hospital Accountability Agreements (HAAs) that set clear expectations around performance and funding for two years. For each hospital, an HAA provides:
The government has also initiated the Province’s drug strategy, including the proclamation of the Transparent Drug System for Patients Act, to reform the provincial drug system and deliver better value for money to Ontario’s taxpayers. This act improves patient access to drugs through new review processes for new drugs. It also recognizes the valuable role that pharmacists play in providing enhanced patient counselling.
Since taking office, the government has made strategic investments and achieved tangible results. The introduction of the Ontario Health Premium (OHP) has helped to ensure the government’s ability to maintain health services. Every penny of the OHP goes towards improving Ontario’s health care system. In 2006–07, revenue from the OHP generated $2.6 billion, representing 7.2 per cent of total expenses for the Ministries of Health and Long-Term Care and Health Promotion.

Health-related revenues, including federal transfer payments, Employer Health Tax, OHP and selected net proceeds from the Ontario Lottery and Gaming Corporation, are expected to increase by $667 million to $17.4 billion in 2007–08. It should be noted that all health-related revenues contribute only a portion of total health-related spending. In 2007–08, health-related revenues are expected to amount to 46 per cent of the $37.9 billion required for the Ministries of Health and Long-Term Care and Health Promotion.
| Change from 2003–04 to 2007–08 |
|
|---|---|
| Hospitals — increase in payments for direct hospital activities, including funding for additional surgical and diagnostic procedures related to Ontario’s Wait Time Strategy. | 2.7 |
| OHIP Services — to fund services provided by physicians and other health care practitioners, including the implementation of 150 new Family Health Teams. | 2.5 |
| Ontario Drug Programs — primarily for increased utilization. | 0.8 |
| Long-Term Care — to enhance the quality of care provided to over 75,000 residents of long-term care homes and to increase long-term care capacity. | 0.8 |
| Community Services — to expand home care, community support services and supportive housing. | 0.6 |
| Public Health including Health Promotion — to increase funding for public health programs including those delivered by public health units, immunizations, and for health promotion and illness prevention activities. | 0.5 |
| Other — including Cancer Care Ontario, mental health, emergency health services and other programs. 2 | 0.6 |
| Total Increase in Funding | 8.5 |
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1 Figures reflect major operating transfer payments in the Ontario Ministries of Health and Long-Term Care and Health Promotion. 2 Includes changes in capital expense and the impact of consolidation of hospitals and other entities. Sources: Ontario Ministries of Health and Long-Term Care and Finance. |
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