Today, the Honourable Mark Holland, Canada’s Minister of Health, the Honourable Gudie Hutchings, Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency, and the Honourable John Hogan, K.C., Newfoundland and Labrador’s Minister of Health and Community Services announced over $47 million in federal investments as part of two bilateral agreements to support the health of people in Newfoundland and Labrador.

“Reaching these agreements is another step in our collaborative efforts to build a stronger public health system for people in Newfoundland and Labrador. Home support workers provide compassionate, dignified care and deserve fair compensation for their essential role in our communities. Additionally, this agreement to support drugs for rare diseases will improve access to medications, early diagnosis, and screening, so that people in Newfoundland and Labrador with rare diseases have the best health outcome possible.”

The Honourable Mark Holland
Minister of Health

“Personal-care workers are unsung heroes. They help us, our loved ones, and neighbours at our most vulnerable moments. So we are giving them a raise, to recognize how hard they work, for all of us.”

The Honourable Gudie Hutchings
Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency

"Our government is improving access to health care in keeping with the recommendations from Health Accord NL for all residents of Newfoundland and Labrador. We are happy to work with the Government of Canada to make drugs for rare diseases more accessible to Newfoundlanders and Labradorians and to recognize the vital services that home support workers provide.”

The Honourable John Hogan, K.C.
Newfoundland and Labrador’s Minister of Health and Community Services 

• Budget 2023 outlined the Working Together to Improve Health Care for Canadians plan, through which the Government of Canada is investing close to $200 billion over 10 years, including $46.2 billion in new funding for provinces and territories, to improve health care for Canadians. Within this funding, $25 billion is allocated through new tailored bilateral agreements to address the unique needs of their populations and geography in four shared health priorities:

  • expanding access to family health services, including in rural and remote areas;
  • supporting health workers and reducing backlogs;
  • increasing mental health and substance use support; and,
  • modernizing health care systems with health data and digital tools. 

• Over the 10-year period (2023-24 to 2032-33), the Government of Canada will invest approximately $805 million in federal funding to help improve health care for Newfoundlanders and Labradorians, which includes $32 million that was committed to mental health and substance use from the 2017 Statement of Principles on Shared Health Priorities.

• The Working Together to Improve Health Care for Canadians plan also outlined an investment of $1.709 billion over five years to increase the wages of Personal Support Workers (PSWs) and related professions and support other recruitment and retention measures for PSWs.

• This funding will be accessible to provinces and territories through an amendment to their Aging with Dignity agreements and will extend their agreement by one year (until 2028-29). Newfoundland and Labrador’s PSW amendment has been added to their Aging with Dignity Agreement and Action Plan.

• The Aging with Dignity agreements also include $2.4 billion ($600 million per year for fiscal years 2023-24 to 2026-27) over four years to improve access to home and community care from Budget 2017; and $3 billion ($600 million per year for fiscal years 2023-24 to 2027-28) over five years for long-term care from Budget 2021 to apply standards of care in long-term care facilities and help support workforce stability. 

• The Aging with Dignity Action Plan outlines how the Government of Newfoundland and Labrador will invest federal funding for the 5-year period. This will provide a federal investment in the amount of approximately $78 million for years 2023-24 to 2027-28 for the Province.

• PTs can tailor the amendment to address the unique needs of their populations and geography. Where wages are relatively high or have been significantly increased in recent years, PTs can use federal funds to also advance other non-wage recruitment and retention measures.

• To support family health services, health workforce and backlogs, mental health and substance use, and modernized health data systems, Canada and Newfoundland and Labrador also signed a three-year Working Together Agreement and Action Plan, announced on March 25, 2024.

• In March 2023, the Government of Canada announced an investment of up to $1.5 billion over three years to support the National Strategy for Drugs for Rare Diseases, including up to $1.4 billion for bilateral agreements with provinces and territories to help patients with rare diseases have access to treatments as early as possible, for better quality of life.

• Innovative treatments for rare diseases can cost anywhere from $100,000 to more than $4 million per year.

Related products

• Backgrounder: Personal Support Worker Amendment – Newfoundland and Labrador Agreement
• Backgrounder: Drugs for Rare Diseases – Newfoundland and Labrador Agreement

Associated links

• Working Together to Improve Health Care in Canada
• National Strategy for Drugs for Rare Diseases
• Budget 2023

Matthew Kronberg
Press Secretary
Office of the Honourable Mark Holland
Minister of Health
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