Ontario hospitals say they need an extra $1 billion this year just to keep up with inflation, rising demand, and population growth — warning that the current funding isn’t enough to maintain patient care.

According to the Ontario Hospital Association (OHA), hospitals across the province are under mounting financial pressure. The sector ended the last fiscal year with a $360 million deficit, down from earlier projections of $706 million thanks to late-year government funding. But heading into 2025–26, that shortfall combined with new cost pressures means hospitals are once again deep in the red.

Melissa Prokopy, the OHA’s vice-president of policy and advocacy, said hospitals have worked hard to stay efficient — managing admissions, shortening stays, and adopting new technologies — but those efforts have limits.

“We’re the most efficient province when it comes to hospitals,” she said. “But inflation and rising demand are pushing us to the edge.”

The Ontario government has increased hospital funding by 4% for the third straight year, amounting to about $1.1 billion in new support. However, hospital leaders say that’s not enough to meet growing needs. They’re calling for more multi-year funding to provide stability and help plan for the future, especially as Ontario’s population ages and the complexity of care increases.

Health Minister Sylvia Jones’ office didn’t confirm whether more support will come in the fall economic update, saying only that the government continues to work with hospitals to ensure they have the tools to provide quality care.

Meanwhile, critics say hospitals can only tighten budgets so much.

“Labour makes up most hospital costs — there’s not much left to cut,” said Liberal health critic Lee Fairclough, a former hospital president. “You can’t keep telling hospitals not to cut services while giving them no way to pay for them.”

The OHA warns that without additional funding and a long-term plan, Ontario hospitals could face deeper deficits — and patients could eventually feel the impact.