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Canadians are concerned about the future of Canada's health care system and have consistently identified health care as their top priority. As key in the process of stabilizing and sustaining the health care system, Premiers and Territorial Leaders are unanimous in calling on the federal government to immediately and fully restore funding cut from the Canada Health and Social Transfer (CHST), and implement an appropriate escalator to ensure that funding for health and other social programs through the CHST keeps pace with the economic trends, social factors, and changing health technology, which impact on the sustainability of the system. This report examines how the health care system is financed, provides an analysis of innovations that are already underway in provinces/territories and looks at the current and future cost drivers and accelerators in Canada s health system. The analysis shows how provinces/territories are already significantly involved in activities that are improving the quality of health care services provided to Canadians. It also illustrates the source and size of health care cost drivers, as well as the significant additional costs associated with health system renewal activities. It provides considerations for restoring confidence in the health care system.