Wednesday, April 22, 2026 – On Wednesday, the Ontario government released its Expenditure Estimates for the 2026-2027 fiscal year, outlining the operating and capital spending requirements of provincial ministries based on the most recent 2026 Ontario budget.
While total health spending is projected to reach $101.2 billion, this topline growth was not distributed evenly according to today’s estimated release. As we noted in our previous Rapid Recap on this year’s budget, the numbers reflect a government laser-focused on system stabilization, pushing care into the community, and accommodating significant growth in pharmaceutical costs.
The 18% increase in drug spending is likely due to the Funding Access to Specific Treatments (FAST) program for non-complex, innovative cancer medicines and the new Health Innovation Pathway for medical and digital health technologies. At the same time, funding for the Digital, Data and Analytics Program dropped 12% and the Population and Public Health Program saw a modest reduction of about 1%.
Health Spending Highlights
Ontario Health Insurance Program (OHIP)
The Ontario Health Insurance Program (OHIP) represents the largest single program investment, with an operating budget set at $33.6 billion for this fiscal year. Compared to last year, there was a substantial $5.3 billion (18.7%) increase. This surge in funding is likely driven by negotiated physician compensation, the ongoing implementation of the province’s primary care expansion, and reimbursement increases among the Ontario Public Drug Programs, especially with six new cancer drugs approved for reimbursement.
Expenditure breakdown by program area:
- Ontario Health Insurance Plan: $25.9 billion (19% increase)
- Ontario Public Drug Programs: $7.0 billion, an increase of $1 billion (18% increase)
- Assistive Devices Program: $676.3 million, an increase of $57.4 million (9.3% increase)
Hospitals
The 2026 Ontario budget committed more than $1.1 billion in additional hospital operating funding for 2026-27, including an increase of up to 4% in base and targeted allocation. This was a direct response to the Ontario Hospital Association’s concerns about roughly $1 billion in structural deficits across the sector. However, not every hospital will be receiving a 4% increase across the board which means structural deficits and pressures will persist for many hospitals. The demand for Emergency Health Services also continues to rise reflected by a 21.4% increase.
Expenditure breakdown by program area:
- Operation of hospitals: $28.3 billion (4.7% increase)
- Emergency Health Services: $1.9 billion (21.4% increase)
- Speciality Psychiatric Hospitals: $905.2 million (12.8% increase)
The Health Capital Program increased by over $801 million to $5.8 billion. This is predominantly driven by Major Hospital Projects and reforms to capital planning grants in the past year, which are projected to increase by $5.1 billion (up from $4.5 billion in 2025-26). Spending was up on Public Health Laboratories and the Health Infrastructure Renewal Fund (smaller capital repairs at hospitals), and down for the Medical and Diagnostic Equipment Fund.
Home and Community Care
The 2026 Ontario budget doubled the province’s commitment to the home and community care sector by investing an additional $1.1 billion over a three-year period on top of a $1.1 billion investment in November’s Fall Economic Statement. Notably, the Community Support Services sector received a 10.6% funding increase. Another big winner was the Community Health Centres (CHCs), which saw the largest increase at 29.3%. CHCs would benefit from both this line item and the province’s $3.4 billion primary care expansion investment in standing up new or expanded teams.
Expenditure breakdown by program area:
- Home Care: $5.5 billion (15.3% increase)
- Community Support Services: $971.4 million (10.6% increase)
- Assisted Living Services: $436.4 million (6.6% increase)
- Community Health Centres: $652.5 million (29.3% increase)
- Acquired Brain Injury programs: $98.7 million (no change)
Mental Health and Addictions
With the exception of the Homeless and Addiction Recovery Treatment Hubs (Hart Hubs) initiative, the 2026 Ontario budget doesn’t mention new investments in mental health addictions. However, the 2026-2027 expenditures allocate funding as follows:
- Community Mental Health: $1.33 billion (1.3% decrease)
- Addiction Program: $368.3 million (2.8% increase)
- Child and Youth Mental Health: $533.9 million (1.3% increase)
Health Policy and Research Program
The Health Policy and Research Program recorded a modest operating expense increase of 5.1% reaching $1.6 billion in the 2026-27 expenditure estimates. This funding is primarily used to drive health system innovation and strategic planning in Ontario. It ensures the ministry can develop evidence-based legislation, provide regulatory oversight for health professionals, and address health inequities through targeted support for underserved and Indigenous populations.
Long-Term Care
The Ontario government continues to invest in the province’s long-term care system. While the Ministry of Long-Term Care’s topline budget grew only slightly, a significant internal realignment has occurred. This shift reflects the need to sustain the government’s commitment to maintain its target of at least four hours of direct care for every long-term care resident. Funding for “system capacity and modernization” decreased by $2.45 billion, while funding for “long-term care homes – operations” rose by $2.36 billion, bringing the total to $7.7 billion.
Further Reading
Read the Expenditure Estimates Volume 1 here.
Read the Expenditure Estimates for the Ministry of Health here.
Read the Expenditure Estimates for the Ministry of Long-Term Care here.
Read Santis Health’s recap on Ontario Budget 2026 here.