A new report by the CCPA says patients are being short-changed due to provincial underfunding
The majority of Ontario’s 136 hospitals have carried operational deficits since 2022, and this puts an already precarious public system at risk, says new analysis from the Canadian Centre for Policy Alternatives (CCPA).
In Failure, by design: Ontario’s deepening hospital funding crisis, CCPA Senior Researcher Andrew Longhurst finds that rising hospital costs of six percent annually and government underfunding are creating a toxic situation that undermines the goal of offering timely access to care for patients.
“Over the last three years, our research shows that predictable increases in Ontario hospital costs are being met with consistent underfunding from the provincial government,” said Longhurst. “When hospital funding increases fall below the required six percent, the health care needs of the population go unmet. It’s a preventable crisis, and it is only deepening.”
At a press conference in Niagara Falls, Longhurst said that emergency department wait-times are the canary in the coal-mine for health system performance.
He said hospital admission wait-times at Niagara Health System have gone up 40% since 2020-21, with 90% of patients in emergency departments waiting 73.8 hours (up from 52.9 hours). Provincially, 90% of patients waited 44 hours for admission in 2024-25 (a 52% increase over five years.)
The Niagara Health System had a $20.16 million deficit in 2024-25, a dramatic increase since the hospital ran a $2.47 million deficit in 2022-23.
Failure, By Design also shows that smaller and rural hospitals are the hardest hit, as hospitals with operating revenues under $100 million had disproportionately more deficits in 2024-25. These smaller hospitals made up 61% of the hospitals in deficit but comprised only 49% of all Ontario hospitals.
The report counters misleading claims by the Ontario government about health care, such as the finance minister’s statement about spending being “unsustainable.”
But total Ontario health care spending merely rose to 7.6% of GDP in 2023 from 7.4% of GDP in 2014, said Longhurst. Even still, Ontario ranked last in per-capita hospital and total health care spending in Canada in 2023.
Similarly, the Ontario government also suggests that the care economy is not the ‘real’ economy, yet in 2024, one in five jobs in Ontario—1.4 million jobs—were in the care economy.
“The Ontario government’s funding austerity, and the attitudes that deride health care workers, are harmful to the workers as well as to the patients and communities who depend on their skills and commitment,” warned Longhurst. “And this all contributes to deteriorating working conditions, rising vacancies among hospital staff, and now, job cuts.
“We strongly recommend that the provincial government implement an aggressive plan to address the hospital funding and capacity crisis—rather than laying off staff. Hospitals need certainty in funding levels, which should increase by six per cent annually. Without this, the consequences are disastrous for patients.”
Michael Hurley, president of Ontario Council of Hospital Unions, the hospital division of CUPE, pointed out that the sharp increase in wait-times occurred before the latest round of hospital job cuts beginning at the end of last year.
“By any metric, our hospitals require a substantial increase in staffing and capacity to improve wait-times, reduce hallway medicine, and enhance the quality of patient care,” he says. “However, the government’s stubborn refusal to meet rising hospital costs is taking us backwards whereby jobs are being eliminated every day even as staffing shortages suffocate the system. The political choice to starve our public hospitals is a failure by design.”
