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The purpose of this enactment is to provide that provinces that
permit private hospitals to operate will have a deduction made from the
amount that would otherwise be paid as the Canada Health and Social
Transfer.
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A private hospital is defined as one that offers medical services that
require an overnight stay, surgery other than minor surgical procedures
or enhanced surgical procedures for an extra fee and that receives
payment or part payment from public funds. Minor surgical procedures
are to be defined in the regulations and will include those minor surgical
procedures that do not normally require an overnight stay.
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If the laws of the province do not forbid the operation of private
hospitals at the beginning of a fiscal year, the deduction from the
Canada Health and Social Transfer may be the full amount the province
will spend in payments to private hospitals for medical services and
surgical procedures for that year.
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If no deduction was made for a fiscal year and after the end of the
fiscal year the Minister determines that the laws of the province did not
forbid private hospitals for all or part of that fiscal year, a deduction
from the transfer for the next fiscal year is to be made, equal to the
amount that the Minister determines to be the amount spent on by the
province in payments to private hospitals for medical and surgical
services for the year or, if the non-compliance was only for part of the
year, for the part that the province was not in compliance.
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