The Ontario government has announced it will launch a new funding program to build more long-term care homes faster.

The program applies across the province, but specifically targets regions like the Greater Toronto and Hamilton Area and northern Ontario that are impacted by labour shortages, supply chain constraints and other challenges.

“As Ontario ages, we need to protect our province by building long-term care homes faster, smarter and in the places that need them most,” said Long-Term Care Minister Natalia Kusendova-Bashta. “Our new capital funding program will help us meet our ambitious construction targets and ensure Ontario families can receive world-class care close to home, for generations to come.”

To support more long-term care operators in the face of rising costs, the Capital Funding Program will shift to a flexible, percentage-based funding model from the previous fixed, cost-per-bed model to better address construction and land cost variations across Ontario.

The new model will provide increased ministry funding equivalent to a maximum of 85 percent of total eligible expenditures with a maximum that’s determined by location across four market segments. Not-for-profit operators will receive ministry funding earlier so that projects can advance to construction while eligible hospital and Indigenous operators can receive the entire amount of funding during their project’s construction period.

The program will enable more redevelopment projects like Maxville Manor, a long-term care home in Maxville where construction is now beginning. The not-for-profit home is upgrading its 122 existing beds and adding 38 new beds by renovating the existing building and adding two new buildings. The phased project will bring modern amenities to support residents and staff and will include a new dining room, spa, multi-purpose room, an adult day program suite and upgraded outdoor areas. The redeveloped, 160-bed home is expected to welcome its first residents in 2027.

"Maxville Manor is pleased to be the recipient of the Capital Funding Program, which was critical in building our new 160-bed long-term care home for the community,” said CEO Amy Porteous.

As of July 2025, 148 projects representing a total of 24,101 new and redeveloped beds are completed, under construction, or have ministry approval to construct.