That's my area of responsibility. I am responsible for the application of GST to public service bodies. That covers basically most services provided by government.
The principle under the GST is that basic health care services are intended to be exempt. In particular, the exemption applies to health care services that are paid or reimbursed under a provincial health care plan, services that are rendered to a patient at a health care facility, or services that are rendered by a member of a profession that is regulated by health care in at least five or more provinces. The overall intent is that we will provide exemption for those types of services provided under those circumstances.
Provinces generally regulate the health care system. They determine under their health care plans what types of services they will cover, and that's within their domain.