WATCH: Ford says Ontario funnelling more than $1.2B to hospitals to help meet pandemic crunch on revenues

The Ontario government is flowing more than $1.2 billion to Ontario's public hospitals to help the facilities "recover from financial pressures created and worsened by COVID-19."

Speaking from Centenary Hospital in Scarborough, Premier Doug Ford hospitals are struggling with the increased costs of the pandemic.

"This funding will help hospitals strengthen their financial position and recover lost revenue due to the pandemic," Ford said.

Of the funding, $696.6 million will help cover the significant working funds deficits qualifying public hospitals have accumulated, with a focus on small and medium hospitals, as well as specialty and rehabilitation hospitals "that carry a large fiscal strain due to their unique situations and historical funding challenges."

The province said all Ontario hospitals are feeling the financial pressure of the pandemic through direct costs as well as through the loss of other forms of revenue such as co-payments for private rooms and the reduction of retail services, all of which contribute to patient care and support clinical services.

The province is earmarking $572.3 million to reimburse hospitals for these losses.

"Ontario's hospitals have been on the frontlines of the COVID-19 pandemic and our government is using every tool at our disposal to support them during these unprecedented times," said Health Minister and Deputy Premier Christine Elliott in a news release. "This funding will ensure Ontario's hospitals can continue to provide high-quality care to all Ontarians as we work together to stop the spread of this virus."

The province also highlighted the fact the 2021 Ontario Budget is to be released on March 24, saying the government focus will be "on protecting people's health, with a plan to defeat COVID-19, and support people and jobs."