The Ontario Proposal

Six months later, Frost returned to Ottawa for the next federal–provincial conference with a carefully formulated proposal that included shared-cost funding for:

• in - and out-patient diagnostic services
• in-patient care in general, convalescent and chronic care hospitals
• in-patient care in mental hospitals and tuberculosis sanatoria
• home care services (Malcolm G. Taylor, Health Insurance and Canadian Public Policy: The Seven Decisions That Created the Canadian Health Insurance System and Their Outcomes, 2nd ed. [Montréal and Kingston: McGill–Queen’s University Press, 1987], p. 131).

The conference participants who had been focused on determining new tax rental agreements were now faced with a challenge. Should the premiers support the Ontario proposal or see what counter-offer the federal government had? In typical Canadian fashion, they decided to set up a working committee to continue discussions. As Frost and his Cabinet worked on legislation for an Ontario Hospital Insurance Plan, Martin and his staff, aided by experts from other departments including Finance, prepared the federal offer.

C. Chisholm, a psychiatric nurse, comforts a patient, circa 1955. The Ontario government proposed sharing the cost of patient care in psychiatric hospitals.
© Health Canada. Reproduced with the permission of the Minister of Public Works and Government Services Canada (2008). Library and Archives Canada, Health and Welfare Canada/Canadian Nurses Association Fonds, e002504597.