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Canada's Premiers Fight
Ottawa Over Health Funding
Excerpt By Rajiv Sekhri, Reuters Health

TORONTO (Reuters) - Canada's provincial leaders demanded C$12.5 billion in new federal money on Thursday to improve the cash-strapped public health system over the next few years in a proposal at odds with Ottawa's plan.

The premiers also said they wanted to have final say on how they spend the money, sparking criticism from Ottawa, which wants annual reports detailing access to health care, efficiency and quality.

"We need accountability and they need accountability. I do not know why someone would not want to be accountable. It just escapes me," Prime Minister Jean Chretien said.

The 10 premiers, however, stressed money should be spent to treat patients, not collect statistics.

Prince Edward Island Premier Pat Binns, speaking at the end of a meeting of the leaders in Toronto, said provinces were seeking C$5.4 billion for the current fiscal year, which ends March 31, and C$7.1 billion in the next year.

Ottawa wants to set up a multi-billion dollar, five-year Health Reform Fund to pay for new and extended services it wants provinces to introduce--home care by 2006, catastrophic drug coverage by the end of 2005 and diagnostic technology.

"They have an accord. We have an accord. We put the two documents on the table and start the negotiations there," said Alberta Premier Ralph Klein, whose health care reforms favoring more private-sector involvement have angered Ottawa.

The premiers will meet with Chretien Feb. 4 and 5 to work out what to do about the funding issue.

Canada's universal health care system has become a political battleground between the provinces, which deliver services, and Ottawa, which legislates standards and provides some of the funding.

The premiers have long blamed such nationwide problems as lengthy waits for tests, diagnoses and operations on the Chretien government, saying the federal share of funding has been slashed to allow Ottawa to balance its books.

"Let's be realistic. They're asking for C$5 billion between now and the end of the (fiscal) year. How can they spend C$5 billion between now and the end of the year?" asked Chretien.

"Of course they'll ask for more money...than they expect to receive," Chretien said.

Under their plan, the premiers want Ottawa to boost funding to 18 percent of health care costs, from 14 percent, and they do not want the federal government meddling too much in how they use the money. Within seven years, the provinces want Ottawa's share to rise to 25 percent of the bill.

"They (Ottawa) have an C$11 billion surplus. We're asking for less than half of that," Ontario Premier Ernie Eves said.

Despite the differences, the two proposals are "reconcilable," New Brunswick Premier Bernard Lord said.

"There is good faith here and the prime minister will be able to agree on a funding plan that will take into account needs across the country," Lord said.

Chretien sent a letter to the premiers on Thursday saying Canada should manage its affairs in "such a way as not to put at risk the hard won fiscal achievements of the past decade."

The new funding will require "substantial new investments from both levels of government," Chretien wrote. He added that he hoped the premiers will agree to Ottawa's proposal on Feb. 5.

"There is agreement that while new money is essential, money alone will not solve the problems of our public health care system," Chretien wrote.

Reference Source 89

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