News release

Ottawa's Solution Recipe for Two-Tier Medicare

Premier's Office

By refusing to guarantee strengthened equalization, the federal government has ensured that Nova Scotians will continue to receive a lower level of health care than the rest of Canada, Premier John Hamm said today at the conclusion of the First Ministers' Meeting in Ottawa.

"For over a year, our government has been very clear that any long-term funding solution for health care in this country must include a stronger equalization program," said the premier, who conveyed this position on numerous occasions to Prime Minister Jean Chrétien, Health Minister Allan Rock, Intergovernmental Affairs Minister Stephane Dion and Senator Bernie Boudreau.

"Ottawa's insistence for a deal based primarily on per-capita funding will condemn Nova Scotians - indeed many Canadians - to a lower level of health care than the rest of the country. Moreover, it means the quality of health care in this country will be further determined by where you live, not by the care you need."

Premier Hamm noted the findings in Dalhousie University's recent report, Federal Funding for Health Care: Are Provinces Getting Their Fair Share?, which concluded: "Unless major changes are made at the federal and inter-provincial level in the financing and support for changes in the health care system, it seems likely that provincial inequalities in the ability to respond to current challenges may pose one of the largest threats to the principles of universal medicare in Canada."

The Canada Health and Social Transfer (CHST) only accounts for 11 per cent of Nova Scotia government's revenues, while equalization provides 28 per cent. With the province's per-person health care needs estimated to cost 10 to 15 per cent higher than the national average, according to the Dalhousie report, the premier stressed that any new per-capita CHST and federal transition funding wouldn't even come close to closing the gap in the level of health care between the provinces.

"The disparities between health care services in the Maritime provinces and those in the richer provinces will not only remain, they will increase," warned Premier Hamm. "This is not about political battles with Ottawa. This is about getting a medicare system that guarantees Canadians quality health care in this country, regardless of where they live."

Health Minister Jamie Muir, who joined the premier in Ottawa, reiterated the premier's earlier commitments that any federal reinvestment would be targeted towards long-term care and mental health. The minister also indicated the government's willingness to pursue joint projects with the federal government in the primary care sector.

"Money alone will not solve the challenges in health care," said Mr. Muir. "But we need an adequate investment from Ottawa to ensure our province is able to change the health care system to one that is more responsive, outcome-based and ready to face the challenges of Nova Scotia's particular health needs. I am deeply disappointed that the federal government has failed to follow through on a meaningful commitment to our province's health care system."