Ontario NDP Demands Urgent Hospital Funding Reform Following Investigative Report
The Ontario New Democratic Party is calling for immediate changes to hospital funding after an investigative report revealed staggering operating deficits exceeding half a billion dollars in the last fiscal year. The Investigative Journalism Bureau uncovered that despite provincial legislation requiring hospitals to balance their budgets annually, these healthcare institutions accumulated massive financial shortfalls that have forced some to seek private bank loans to maintain operations.
"Completely Unacceptable" Financial Situation
NDP health critic France Gélinas expressed outrage at the findings during a press conference, stating "When our hospitals cannot make payroll and have to go to the bank in order to be able to pay their employees, there's something drastically wrong." She emphasized that both the government and health minister are aware of the situation but have failed to take corrective action, calling the current state of affairs "completely unacceptable."
The investigative report disclosed that as of March 2025, Ontario hospitals owed more than $66 million to chartered banks and had paid at least $4 million in short-term borrowing interest during the 2024-25 fiscal year. Gélinas noted that while she was aware hospitals were seeking bank loans, the magnitude of interest payments came as a shock, stating that $66 million "makes no sense" for healthcare institutions struggling to provide essential services.
Contradiction Between Law and Practice
Under Ontario's current legal framework, hospitals are mandated to balance their budgets each year. However, the investigation revealed two primary methods institutions have used to circumvent this requirement:
- Government-issued waivers permitting temporary deficits
- Private bank borrowing to artificially balance financial statements
Anthony Dale, President and CEO of the Ontario Hospital Association, defended the practice of short-term borrowing as among the "standard financial tools" hospitals employ to manage cash flow and respond to changing conditions. He stated that "Ontario hospitals are borrowing to deliver critical services — managing risk, investing prudently, and sustaining care in a volatile environment."
Inadequate Funding Increases Compound Problems
The funding challenges come amid historically low increases to Ontario's healthcare budget. This year's annual funding increase for the overall health sector was set at just 0.7 percent, compared to an average of five percent over the past 34 years. A 2025 spending review from the province's Fiscal Accountability Office concluded that the government's proposed hospital funding would be insufficient to maintain current service levels without additional investments or new efficiencies.
Healthcare represents Ontario's largest expenditure, consuming approximately 40 percent of the provincial operating budget—about $90 billion annually. Hospitals receive roughly one-third of this substantial allocation, yet still face significant financial pressures.
Real-World Consequences of Underfunding
Former CEO and president of West Haldimand General Hospital David Bird provided a stark illustration of how funding shortfalls affect patient care. He described receiving cardiac treatment in a hospital hallway after waiting 28 hours in the emergency room. Bird warned that relying on bank borrowing represents "a very bad thing to do" for healthcare institutions already stretched thin.
Dale of the Ontario Hospital Association echoed concerns about the sustainability of current funding models, stating "The existing model cannot absorb today's pressures — or meet future demand — without a fundamental shift in how care is funded and delivered."
The Progressive Conservative government has not yet responded to questions about hospital borrowing practices raised by the Investigative Journalism Bureau. As the NDP continues to pressure for reforms, the debate over adequate healthcare funding in Ontario intensifies, with patient care and institutional stability hanging in the balance.
