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Health Care a Leading Priority in Newfoundland and Labrador Budget

April 10, 2025

Health Care a Leading Priority in Newfoundland and Labrador Budget

 

April 10, 2025 – On April 9, 2025, Newfoundland and Labrador tabled Budget 2025: Smarter, Stronger Better, with a projected deficit of $372 million for 2025-26, and projected revenues of $10.7 billion. Affordability, education and health care were among the leading investment areas. According to the budget, the province will borrow $ 4.1 billion in the 2025-26 fiscal year, and its net debt will hit $19.4 billion. The deficit for the fiscal year that ended last month (March 2025) was $252 million, about $100 million more than initially forecast.

Key Takeaways

  • Health is the largest spending area: The budget allocated $4.45 billion to health care, accounting for about 40% of total spending. This represents an 8.5% increase in health spending over the 2024-25 budget, but just 2.2% more than the revised estimates for that year noted in today’s budget. The priorities emphasize improved service delivery through digital health and infrastructural expansions, and strengthening recruitment and retention activities.

  • Preparation for tariff pressures: The government’s budget included a $200 million contingency for tariff-related pressures, including a drop in employment rates.

  • Premier Furey’s final budget: Notably, this budget is Premier Furey’s last, as he has tendered his resignation and will step down once a new Liberal party leader – and Premier – is chosen on or before October 14, 2025.

  • Seniors well-being key concern:  $10 million invested under the Seniors Health and Well-Being Plan and investments in long-term care, seniors vaccines and grants for care at home come at a time when the government is under pressure for the quality of care provided to people living in personal care homes, following a report by the auditor general.

Health Care Highlights

The government noted that since 2020, Premier Andrew Furey’s Liberals have increased spending in health by 42% as they made major investments in the province’s NL Health Accord – its roadmap to improving access to health care for Newfoundlanders and Labradorians. Newfoundland and Labrador’s budget demonstrates record investments in health care, ranging from primary care initiatives to digital health resources. 

Improving Service Delivery

Budget 2025 includes investments to transform health care through recruiting health care professionals and making it easier for residents to access health care:

Digital Health and System Modernization 

  • $140 million to continue the implementation of a modernized Health Information System. This is part of a $620 million transformation of health IT infrastructure.
  • $10 million for digital health, including virtual care and MyHealthNL, continuing the province’s commitment to leveraging technology to provide care to residents. The government also noted that 18,000 people attended more than 27,000 virtual appointments to receive primary care this past year.

Service and Infrastructure Expansion 

  • More than $26 million for the integration of ambulance services, including $8.5 million for the expansion of helicopter emergency medevac services.
  • $15 million to create an ambulatory care hub and two new urgent care centres.
  • More than $10 million to help reduce backlogs, such as the expansion of MRI and CT services, expanded capacity for orthopedic surgery and joint replacement surgeries, an outpatient ambulatory care clinic for orthopedics at Carbonear General Hospital, a dedicated hip fracture unit at St. Clare’s Mercy Hospital, expansion of the PET/CT program, and five additional orthopedic surgery beds.
  • $4.3 million to operationalize a new CT service in Channel-Port aux Basques.
  • More than $3.2 million to expand access to fertility services.
  • $3 million to operationalize a fourth cardiac catheterization suite.
  • $2.5 million for regional cardiovascular and stroke care to ensure equitable access across the province, including endovascular thrombectomy.
  • Approximately $1.8 million for the continuous glucose monitoring program.
  • $1.6 million to create a chronic pain integrated hub and spoke model.
  • $1 million for the clinical translational genomics program.

Senior and Long-Term Care 

  • An additional $15.7 million for vaccines to protect seniors, including shingles, RSV, and pneumococcal vaccines.
  • $13.6 million to open 15 transitional and 30 long-term care beds in Corner Brook.

Health Equity 

  • $2 million to continue to provide health care to newcomers.
  • $1 million for mobile primary health care clinics.
  • Close to $800,000 in increased support to the deaf and hard-of-hearing community.
  • Over $500,000 to support community-based Well-Being Networks.

Family Care Teams

Budget 2025 includes $35 million to hire additional health care providers for existing Family Care Teams and to create new teams. 

Access to Cancer Care Prevention and Screening

Budget 2025 includes an additional $4 million for preventative cancer treatment, including:

  • $1.5 million for new human papillomavirus screening.
  • $1.5 million to expand the lung cancer screening program.
  • $1 million for the expansion of breast cancer screening to individuals aged 40 to 49.

Mental Health and Addictions Support

A new Mental Health and Addictions Centre will open this spring. Budget 2025 includes investments to advance accessibility to mental health and addictions services, such as: 

  • More than $6 million to support addiction recovery, including a 10-bed unit in Labrador, and recovery homes.
  • $5.7 million to enable Choices for Youth to implement services for vulnerable youth.
  • Close to $5 million for The Gathering Place to provide social support and services to vulnerable people. This reflects a $1 million increase.
  • More than $3.6 million for stepped-down mental health facilities and wraparound community-based supports.
  • Approximately $1.5 million to enable the Harm Reduction Team to continue providing care for vulnerable individuals.
  • More than $600,000 to increase the availability of naloxone kits to assist individuals at risk of overdose from opioids.

Recruitment and Retention

Since April 2023, more than 140 physicians and 1,100 nurses have been recruited to work in the province. Building on this momentum, Budget 2025 includes:

  • $10 million for recruitment and retention activities.
  • Close to $7 million for the Faculty of Medicine for the additional undergraduate seats for Newfoundlanders and Labradorians, expansion of the Internal Medicine Canadian and International Program, creation of longitudinal integrated clerkships, and an increase in preceptor remuneration and learner supports.
  • $2.4 million in settlement supports for internationally-educated nurses.
  • More than $500,000 for a nursing mentorship program.

Medical Transportation Assistance Program

$1 million additional funding for medical transportation assistance.

Drug Therapies

The Prescription Drug Program has been allocated over $200 million to ensure that eligible residents receive essential drug treatments. This year, an additional $17 million will go towards adding 18 new drugs to the formulary. These drugs will expand treatment options for cancer, cardiovascular disease, tumours associated with tuberous sclerosis complex, and HIV-1 prevention.

Healthy and Aging Seniors

The Seniors’ Health and Well-Being Plan emphasizes helping seniors age and live well in their homes and communities. In addition to Budget 2025 initiatives, the budget promises to increase investments in those who care for people who live in personal care homes, community care homes, or receive care in their own homes. Budget 2025 includes:

  • $10 million with initiatives under the Seniors Health and Well-Being Plan, including the Aging Well at Home Grant, the Caregiver Benefit, financial assistance for food and heating for seniors in coastal Labrador communities, and increased investments for home repair and modifications for seniors.
  • Approximately $15.7 million to provide long-term care at Chancellor Park in St. John’s.
  • $8.5 million to offer the shingles vaccine to residents 65 to 70 years of age and immunocompromised residents over the age of 70 as part of the provincial immunization program, effective June 1, 2025.
  • $2.3 million to help the Lionel Kelland Hospice provide hospice care in Grand Falls-Windsor.

Tariff Support and Economic Outlook

The province’s Minister of Finance, Siobhan Coady, noted that the ongoing economic uncertainty and trade war with the U.S. and China make this year a bad time to try to balance budgets. Rather, the government’s budget included a $200 million contingency for tariff-related pressures. 

The government said it expected a 1.2% drop in total employment tied directly to tariffs. However, the province is still expected to lead Canada with a 4.4% growth in real GDP over the next year, as oil and gas revenues are expected to increase and major wind, mineral and hydro projects are underway. With these increased revenues, the government said it could balance the budget by 2026-27.