Mr. Speaker, I am pleased to address the hon. member's question regarding the Canada health transfer and health care funding. Before I begin, let me be very clear. There will be no cuts to our health care.
Roles and responsibilities for health care services are shared between provincial and territorial governments and the federal government. Provinces and territories are responsible for the design, delivery, and management of health care in their jurisdictions. For its part, the federal government sets and administers national standards for the health care system through the Canada Health Act, provides funding support for provincial and territorial health care systems, and supports the delivery of health care services to specific groups.
In 2016-17, provinces and territories will receive $36.1 billion in cash through the Canada health transfer. Under current federal-provincial fiscal arrangements, this amount will continue to increase each year, in line with the rate of nominal GDP growth, with a minimum increase of at least 3% per year. In addition, over the next five years, provinces and territories will receive $19 billion more in the Canada health transfer to support health care.
In addition to the Canada health transfer, our government has also committed to providing $3 billion in targeted funding to support improved access to home care, including palliative care, as part of the health accord.
Canada is one of the world's highest spenders on health care, yet we are not achieving the kinds of results Canadians need and deserve. The health accords of the past, for all their good intentions, did not tackle the fundamental structural problems facing Canadian health care. We took the status quo and we inflated it.
We have an obligation, as the Government of Canada, to do more than simply open up the federal wallet. Canadians expect their government to have a say in how new funds are to be invested to achieve tangible improvements in health care. Our government understands that new targeted investments are needed to accelerate change. Much more can be done to ensure value for money and improve the responsiveness and sustainability of our health system.
The health accord provides a great opportunity to trigger innovative transformation in care delivery. Federal, provincial, and territorial ministers of health have already agreed on a set of shared priorities in health where change is most needed. These include home care, pharmaceuticals, mental health, innovation, and better health care for indigenous Canadians.
By working together across jurisdictions, we have a golden opportunity to start shifting the system and to address some of these priorities. Our government comes to the table ready to invest new federal money in ways that will advance transformation in health care. We must ensure that new money does not simply inflate health system costs but helps to modernize health care to deliver better care and better outcomes at an affordable cost.
In closing, our government is clearly demonstrating our commitment to the future of Canada's health care system through sustainable funding and by fostering partnerships that can achieve better health outcomes and quality of care for all Canadians. As a government that truly cares about Canadians, we know that better is always possible.