About $667.2 million will be split between 150 hospitals in Ontario in a bid to boost the healthcare system of the province. While the medical institutions welcomed the extra fund, they said it would not be sufficient due to rising cost of health care, including medication.

The provincial law mandates hospitals to balance their budgets even if it would require them to fire some personnel and cut corners. Tom Closson, president of the Ontario Hospital Association, told the Toronto Star, "For a good chunk of the hospitals, it's going to be difficult to balance their budgets."

An organization of 14 provincial offices called Local Health Integration Networks will make the final recommendation on how much would be given to the 150 hospitals.

Among the possible recipients of the health fund are medical centers in fast-growing areas are their surgical units, and MRI and CT scan sections.

Canadian Health Minister George Smitherman announced the release of extra funds on Sunday. With the $667 million, the health sector now has an annual allocation of $14.4 billion.

Rogue Valley intends to push through with its purchase of 36 additional beds, which had been delayed for the past three years due to budget deficit and to cut down on waiting times.

Nurses are hoping the need for a balance budget, despite the new funds, would not result to job cuts or reduction of nursing hours. Linda Haslam-Stroud, president of the Ontario Nurses' Association, warned, "At the end of the day they're reducing nursing hours and reducing nursing hours will reduce nursing care hours to our patients."

Ottawa-West Napean MP Jim Watson said the hike in health care funding seeks to catch-up and reverse the damage caused by the annual cuts made by past governments.