Ontario Hospitals Demand Additional $1 Billion for 2025 Funding

Ontario hospitals are calling for an additional $1 billion in funding to address urgent financial pressures stemming from population growth, inflation, and rising demand for services. The Ontario Hospital Association (OHA) revealed that many hospitals across the province are grappling with significant deficits, a situation that has worsened compared to the previous year.

In the 2024-25 fiscal year, the total hospital deficit reached $360 million, a reduction from an earlier estimate of $706 million due to some last-minute revenues, including government support. However, as hospitals prepare for the 2025-26 year, they find themselves burdened with the previous year’s financial shortfall and new, unfunded cost pressures that require an additional $1 billion to maintain operations effectively.

Challenges Facing Ontario Hospitals

The OHA’s vice-president of policy and advocacy, Melissa Prokopy, emphasized that hospitals face a multitude of challenges. “Hospitals are facing a kind of multitude of complex challenges — financial challenges, operational challenges and pressures… things like inflation, the increased demand for services,” Prokopy stated in an interview. Despite efforts to enhance efficiencies, such as managing admissions and using innovations to reduce hospital stays, she noted that these measures have limits.

The provincial government is expected to release its fall economic statement, which may address the funding needs of hospitals. A spokesperson for Health Minister Sylvia Jones, Ema Popovic, confirmed that the government is collaborating with hospital partners, including the OHA, to ensure hospitals receive necessary resources. Popovic highlighted that hospitals have already benefited from a four percent funding increase for the third consecutive year.

Prokopy pointed out that hospitals require more comprehensive multi-year planning to ensure budget stability and predictability. “The pressures… aren’t new for this year,” she explained. “Many of them are structural in nature and are years in the making.” She underscored the importance of balancing short-term service delivery with long-term planning, particularly in light of an aging population and the increasing complexity of care needs.

Political Responses and Future Considerations

Opposition voices have also weighed in on the funding crisis. Lee Fairclough, the Liberal Party’s critic for hospitals and a former hospital president, noted that labor costs dominate hospital spending, leaving little room for financial maneuvering. Fairclough questioned the sustainability of current funding levels and suggested that hospitals might have to compromise on service quality or seek alternative revenue sources, such as increased parking fees.

She remarked, “At a certain point, you can’t sort of say to a hospital, ‘You can’t cut service, but you still have to be able to pay for all of this.’” Fairclough advocated for increased government support to help hospitals navigate these financial challenges.

As Ontario hospitals continue to manage their resources tightly, the pressing need for additional funding underscores the complexities facing the healthcare sector. The outcome of the upcoming economic statement could have significant implications for the province’s hospitals as they strive to maintain the high-quality care that patients depend on.

This report by The Canadian Press was first published on October 8, 2025.