Health care costs P.E.I. $30 million a year and is expanding by seven per cent each year, said Finance Minister Mitch Murphy. As a result, it will be a challenge for the province to continue to pay 84 per cent of the cost. Prior to the budget, the province had floated the idea of a Health Premium charge, paid by Islanders to maintain health services. But Murphy said the government rejected the idea based on public feedback.

"I never had more phone calls, e-mails in my life from Island people on any other issue," said Murphy. "Islanders should not have to shoulder the burden of inadequate funding."

New funding includes:

• $500,000 to Tyne Valley Child Youth Development Health Centre for high-risk children.
• New Prince County Hospital will receive patients starting April 4.
• $1.8 million to blood services.
• Investments in P.E.I. Home Oxygen Program for home therapy.
• Pay income-based portion of costs of some rheumatoid arthritis and Crohn's disease medications.
• $800,000 to Provincial Drug Program.