The Ontario government has unveiled its 2025 Budget, committing significant resources to healthcare, hospitals, and long-term care (LTC). While these investments are commendable, CARP remains concerned about their sustainability amidst projected economic challenges.

Hospital and Healthcare Funding

The budget allocates an additional $1.1 billion to hospital funding and plans to invest approximately $56 billion over the next decade in health infrastructure, including over $43 billion in capital grants. This includes the addition of approximately 3,000 new hospital beds to enhance access to quality care.

Furthermore, $280 million over two years is earmarked to expand integrated community health service centres, offering MRI, CT scans, endoscopy procedures, and orthopedic surgeries in community settings. CARP supports innovative programs that increase access and shorten wait times for high-demand healthcare services that can be provided outside of a hospital setting, but are still fully covered by OHIP.

However, the Financial Accountability Office (FAO) has projected a $21.3 billion shortfall in health sector funding over the next six years, raising concerns about the province’s ability to meet its healthcare commitments without additional funding or program adjustments.

Long-Term Care (LTC) Initiatives

The government continues its commitment to build 58,000 new and upgraded LTC beds by 2028. As of April 2025, 147 LTC projects are either open, under construction, or have approvals to start construction. CARP estimates that the province has about 50% of those promised new or upgraded beds in some phase of project management, from promised dollars to contracts for development through to several thousand net new beds available today. CARP also notes the lack of transparency in the roll out of these LTC promises and remains concerned about the deadlines (and the growing need), being met.

While these efforts are commendable, CARP urges the province to ensure that these desperately needed facilities are delivered on time and are adequately staffed and resourced to meet the growing needs of seniors. 

Active Living and Grants for Veterans Community Programs

Additionally, the budget provides $3 million over the next three years to establish a dedicated veteran-focused funding stream within the existing Seniors Community Grant Program and plans to add up to 100 new Seniors Active Living Centres (SALCs) across the province, with a 10% increase in base funding to existing SALCs. These investments in activity centres respond to CARP’s call for Ontario to support seniors’ fitness initiatives. A more engaged and physically active seniors population can dramatically reduce healthcare costs while improving the dignity and quality of life for older adults.

Economic Pressures and Sustainability

The province’s economic outlook is strained, with the budget deficit expected to more than double due to increased spending to counteract economic impacts from a trade conflict with the United States. The net debt-to-GDP ratio is projected to rise to 37.9% in the current fiscal year. These fiscal challenges raise questions about the long-term sustainability of healthcare funding, especially as the aging population increases demand for services.

CARP’s Position

CARP acknowledges the government’s efforts to invest in healthcare and LTC. However, we urge the province to develop a comprehensive plan that ensures these investments are sustainable in the face of economic headwinds. This includes transparent reporting on healthcare spending, strategies to address staffing shortages, and measures to ensure that LTC facilities can meet the growing needs of seniors.

A growing economy is essential to support the healthcare needs of an aging population. CARP calls on the Ontario government to prioritize economic policies that stimulate growth while ensuring that healthcare funding remains robust and sustainable for future generations.

For Media Inquiries: media@carp.ca

Budget Highlights for Seniors:

• Investing 3 million over next 3 years beginning in 2025-26, to establish a dedicated veteran focused funding stream within the existing Seniors community grant program

• Addition of up to 100 new seniors active living centres (SALCs programs) across province

  • Increase base funding to existing SALCS by 10 % – up to 55,000 per centre

  • Close to 17 million over three years

• 300 million over the next four years including 60 million in 2025-26 in the primary care teaching clinics – dedicated learning environments for primary care physicians

• Invest additional 261.7 million over three years to Ontario learn and stay grant

• 1.1 billion in additional hospital funding

• 280 million over two years to support the expansion of integrated community health service centres – MRI, CT scans, endoscopy procedures, and orthopedic surgeries in the community setting

• Investing approx 56 billion over the next decade in health infrastructure, including over 43 billion in capital grants

  • Deliver approx 3,000 new hospital beds to enhance access to quality care

•  Continue its commitment to  build 58,000 new and upgraded Long Term Care beds to modern design by 2028. As of april 2025, 147 LTC are either open, under construction or have approvals to start construction