Nova Scotia Health Minister 'Guardedly Optimistic' After Federal Funding Extension to 2028
Federal Health Minister Marjorie Michel announced a one-year extension of bilateral health agreements through March 2028, bringing Nova Scotia's total federal health funding to $1.75 billion for the 2027-28 fiscal year. Provincial Health Minister Michelle Thompson expressed guarded optimism about reaching a longer-term deal and confirmed no service cuts are currently planned.
Federal Health Minister Marjorie Michel has announced a one-year extension of bilateral agreements that provide direct funding for mental health, addictions, home and community care, and aging with dignity through March 2028.
For Nova Scotia, the extended bilateral funding includes support for drugs for rare diseases. When combined with almost $1.6 billion from the Canada Health Transfer, Ottawa will send the province a total of $1.75 billion for the 2027-28 fiscal year. Federal funding accounts for approximately 19 per cent of what Nova Scotia spends on health care.
Nova Scotia Health Minister Michelle Thompson described herself as "guardedly optimistic" about reaching a longer-term arrangement following the one-year extension. The extension provides time and space for provinces and territories to negotiate stable and predictable funding with the federal government. Evidence exists across the country of the impact of this funding on health-care delivery, services, and outcomes.
Thompson expects federal, provincial, and territorial health ministers to meet sometime after Christmas to discuss future funding arrangements.
Despite the ongoing negotiations, Thompson stated there is currently no consideration in Nova Scotia of cuts or reduced services as a Plan B if a long-term agreement cannot be reached.