Healthcare as Investment: CMA Urges Ottawa to Sustain Funding Amid Economic Concerns

OTTAWA, ON – November 03, 2025 – The Canadian Medical Association (CMA) is making a forceful case for sustained federal health funding levels, arguing that investing in healthcare is not simply a social program, but a crucial driver of economic growth and workforce participation. This appeal comes as the federal government, under Prime Minister Mark Carney, signals a period of fiscal restraint and difficult budgetary choices.

Economic Engine or Cost Centre?

The CMA’s push centers on reframing the narrative around healthcare spending. Traditionally viewed as a significant cost centre, the organization asserts that a healthy population is fundamental to a thriving economy. “We need to move beyond seeing healthcare as an expense and recognize it as an investment in our most valuable asset – our people,” explained one source close to the CMA. “A healthy workforce is a productive workforce, and a productive workforce drives innovation and economic growth.”

The argument resonates with economists who point to the long-term costs associated with underfunding healthcare. These include decreased labour force participation due to illness, reduced productivity, and increased strain on other social programs. One economic analyst commented, “Ignoring preventative care and allowing health issues to escalate ultimately costs more in the long run, both in terms of direct healthcare costs and lost economic output.”

The Wait Time Crisis and System Innovation

Despite substantial healthcare spending – totaling $372 billion in 2024 – Canada continues to grapple with significant challenges in access to care. Long wait times for specialist appointments, diagnostic procedures, and elective surgeries remain a persistent problem. This backlog, exacerbated by the COVID-19 pandemic, impacts quality of life, reduces productivity, and places added strain on the healthcare system.

“The wait times are unacceptable,” said a patient advocate. “People are suffering needlessly, and their quality of life is being severely impacted. It's not just about convenience; it's about their health and well-being.”

The CMA proposes a series of ‘low-cost’ solutions to address these issues, including streamlining immigration for healthcare professionals, improving data sharing across provincial borders, and fostering greater collaboration between healthcare providers. While acknowledging the need for significant investment in certain areas, the CMA emphasizes that these solutions offer a pathway to greater efficiency and improved outcomes without necessarily requiring substantial increases in spending. However, implementing these changes poses challenges, including navigating provincial jurisdictions and addressing privacy concerns. One healthcare administrator noted, “Data interoperability is a complex undertaking. It requires standardized systems, robust security measures, and a commitment to collaboration across all provinces and territories.”

A Balancing Act: Federal-Provincial Dynamics

The debate over health funding is further complicated by the ongoing tension between the federal government and the provinces over financial responsibility. Provinces frequently argue that federal health transfers are insufficient to meet the growing demands of their healthcare systems, while the federal government maintains that it provides adequate funding and expects provinces to manage their healthcare budgets responsibly.

“The federal-provincial dynamic is always a challenge,” observed a political analyst. “Provinces want more money, but they also want autonomy over how they spend it. The federal government wants to ensure accountability and achieve national standards. Finding a balance is never easy.”

The current federal government, led by Prime Minister Carney, has signaled a commitment to maintaining existing health transfer levels, but faces growing pressure to address a widening budget deficit. This balancing act requires difficult choices and potentially unpopular decisions. The passage of the 2025 federal budget, a closely watched event, revealed a cautious approach to spending, prioritizing fiscal restraint while maintaining key investments in areas like healthcare and infrastructure. One government insider confided, “We’re facing a tough fiscal reality. We have to make difficult choices to ensure the long-term sustainability of our programs.” The CMA is hopeful that the government will recognize the economic benefits of investing in healthcare and prioritize funding in this critical area. They emphasize that maintaining existing funding levels is not simply about preserving the status quo, but about safeguarding the health of Canadians and ensuring a strong and prosperous economy for the future. The debate over health funding is likely to continue, as the federal government and provinces grapple with competing priorities and a challenging fiscal landscape. The long-term health and economic well-being of Canadians hang in the balance.