Ontario Government Assesses Financial Risks in Long-Term Care Sector

The Ontario government is currently assessing financial risks within the long-term care sector, driven by the challenges of caring for an aging population. Civil servants detailed in a report that a 'homes in distress' fund exists to help manage these issues. If a home faces acute or unforeseen financial challenges affecting its cash flow, it must liaise with Ontario Health to assess the immediate financial risks. Ontario Health may then seek support from the Ministry of Long-Term Care, which can approve one-time payments for financial relief in exceptional circumstances.

The data indicates that the number of exceptional circumstances requiring emergency government bailouts is increasing. For example, in 2021-22, the Ford government spent $2.4 million bailing out long-term care homes, which included one non-profit and three for-profit facilities. During that year, for-profit homes received an average of $350,000 each.