Canada’s healthcare system is publicly funded, built on the principle that access to essential medical care should not depend on one’s ability to pay. Yet despite this ideal, hospitals across the country increasingly rely on charitable foundations to fill financial gaps; particularly when it comes to acquiring or upgrading capital equipment such as MRI machines, surgical suites, or even hospital beds. This raises an urgent question: where do we draw the line between what taxpayers should fund and what private donations should cover?
Historically, charitable giving and volunteerism have been strong elements of Canadian civic life. From Terry Fox Runs to hospital galas, Canadians have given generously of both time and money. Foundations like those supporting SickKids in Toronto or the Ottawa Hospital routinely raise millions for major equipment and infrastructure projects. This philanthropy has enabled many hospitals to expand their services, acquire cutting-edge technology, and improve patient care. However, relying on private donors to cover essential infrastructure can lead to inequities and accountability challenges.

Public funding should remain the primary source of capital investment for core hospital services. A hospital’s ability to deliver life-saving care should not depend on how wealthy its local community is or how effective its fundraising team happens to be. A well-off urban centre like Vancouver or Toronto may be able to raise tens of millions in months, while smaller or rural hospitals struggle to replace outdated X-ray machines. This creates a two-tiered system by the back door, one that undermines the universality and equity at the heart of Medicare.
Moreover, capital equipment is not a luxury; it is central to a hospital’s mission. When hospitals must wait on campaign goals or donor approvals to purchase a new CT scanner, patients pay the price through longer wait times and reduced diagnostic accuracy. Public infrastructure should be predictable, planned, and guided by population health needs—not marketable donor narratives or foundation marketing strategies.
Local philanthropic families who donate millions often have their names emblazoned across hospital wings or research centres, a modern version of constructing Victorian Follies or erecting statues in the town square. While some see this as genuine civic pride, and a way to give back, others question whether it’s philanthropy or vanity, blurring the line between public good and private legacy.
That said, there is still a legitimate and valuable role for hospital foundations. Philanthropy should enhance care, not substitute for the basics. Foundations can support research initiatives, pilot programs, staff development, and the “extras” that make hospitals more human; like family rooms, healing gardens, or neonatal cuddler programs. They can even accelerate the purchase of capital equipment, but only where government has committed base funding or provided a clear upgrade timeline.
Ultimately, drawing the line is about reinforcing accountability. Governments must be transparent about what the public system will fund and ensure consistent, equitable investment across the country. Hospital foundations should be free to inspire generosity, but not to carry the burden of maintaining essential care. Public healthcare must never become dependent on private generosity. That’s not a donation, it’s a symptom of underfunding.
Sources
• Canadian Institute for Health Information (CIHI). “National Health Expenditure Trends, 2023.” https://www.cihi.ca/en/national-health-expenditure-trends
• Globe and Mail. “Canada’s hospitals increasingly rely on fundraising to cover capital costs.” https://www.theglobeandmail.com/canada/article-hospitals-capital-equipment-fundraising/
• CanadaHelps. “The Giving Report 2024.” https://www.canadahelps.org/en/the-giving-report/








