March 28, 2026
Ontario’s latest budget increases spending across the health system, with new funding for hospitals, home care, and long-term care as the province faces a rapid rise in its senior population.
The government is committing more than $1.1 billion in additional hospital funding this year, alongside targeted investments to reduce surgical and diagnostic backlogs. Workforce programs are expanding, including continued support for training doctors and nurses through initiatives such as the Learn and Stay grant.
Home and community care is also receiving another $1.1 billion, on top of a previously announced $1.1 billion commitment. Long-term care funding now exceeds $9 billion annually, reflecting ongoing efforts to expand capacity and address waitlists.
The spending comes as Ontario enters a period of sharp demographic change. The number of residents aged 75 and older is rising quickly and is expected to increase by close to one million over the next decade. That age group accounts for a disproportionate share of hospital use, surgeries, home care, and long-term care admissions.
The pressure is already visible across the system. Emergency room waits remain long, surgical backlogs persist, and hospitals continue to house patients who are medically stable but unable to return home or access long-term care.
Falls are a significant driver. About one in four seniors experiences a fall each year, often leading to hospital stays and, in many cases, permanent transitions out of independent living. Chronic disease, multiple medications, and mobility challenges contribute to a steady flow of patients into acute care.
The budget’s approach centres on expanding capacity within that system.
Anthony Quinn, President of the Canadian Association of Retired Persons (CARP), said the spending reflects a government that understands the pressure but has not yet shifted the model.
“You can see in this budget that the government recognizes the strain in the system. Hospitals need support. The workforce needs to grow. Long-term care still has to expand. That’s all real.”
He pointed to where most of the investment continues to land.
“The money is still going to hospitals and long-term care. That’s where people end up when something has already gone wrong. The system is still built around that.”
CARP has been urging the province to move more aggressively toward care at home, arguing that it is the only way to reduce demand on hospitals and long-term care.
“Home care is being funded, but it’s not the starting point. We’re not seeing a shift that makes staying at home the default. Without that, the pressure keeps building.”
The budget does not include targets tied to reducing hospital admissions among seniors or delaying entry into long-term care. Prevention programs, including fall reduction, chronic disease management, and early intervention in dementia, are not expanded at a system-wide level.
Quinn said those areas determine whether the system can keep up.
“We know where the pressure starts. Falls, chronic disease, mobility loss. If you don’t deal with that upstream, it shows up in emergency rooms and long-term care.”
Families are already absorbing part of the strain. Caregivers often step in when home care services are unavailable or inconsistent, balancing work and care responsibilities without formal support.
“Families are carrying more of the load than they should. That hasn’t changed.”
Housing costs are also shaping how seniors move through the system.
Many older homeowners are choosing to stay in place rather than downsize, citing the cost of moving. A typical example illustrates the challenge. A senior selling a Toronto home for $800,000 and purchasing a smaller $650,000 bungalow faces roughly $19,000 in land transfer taxes, $84,500 in HST on a new build, and additional legal and closing costs. The total can exceed $100,000.
Quinn said those costs are keeping people in homes that no longer meet their needs.
“We are effectively taxing seniors out of downsizing. People are staying where they are because the move doesn’t make sense financially.”
CARP is calling for the province to extend tax relief on new construction to seniors who are downsizing, arguing that it would improve both housing availability and health outcomes.
“If we want people to move into the right housing and stay out of the hospital system longer, we have to remove that barrier.”
The budget increases resources across healthcare and responds to current pressures. Whether it is enough to keep pace with the demographic shift now underway remains uncertain.
“The growth in demand is concentrated and it’s accelerating,” Quinn said. “Adding capacity helps, but it doesn’t change where this is headed.”
