Data saves lives: Bill S-5 revives interoperability requirements for health-care technology

On February 4, 2026, the federal government reintroduced legislation aimed at modernizing Canada’s health-care system through improved digital connectivity. Bill S-5, the Connected Care for Canadians Act, is substantially similar to Bill C-72, which was introduced in June 2024 but died when Parliament was prorogued.

Why interoperability matters

While more clinicians are moving toward digital health solutions, the tools for patients to access their own information in Canada remain limited because health data is not sufficiently standardized or connected. Surveys show that more than 70% of electronic health information is not shared between health-care providers to support integrated service delivery across the continuum of care.

This lack of interoperability can cause harm to patients and, among other things, can result in unnecessary or duplicative tests, longer wait times, longer hospital stays and medication errors, thereby compounding other health-care challenges. Here, surveys show that while 95% of physicians use electronic systems, many still commonly rely on fax and paper referrals because digital systems between providers do not connect. Health Canada calls this “entirely unacceptable.”

What the legislation requires

The legislation aims to accomplish interoperability by requiring all organizations providing health information technology in Canada to adopt common standards and to allow for protected and secure information exchange across various systems. Bill S-5 is focused on the interoperability of various computer systems and software used in health care in Canada – in particular, how these systems exchange and use information between them.

Health information technology will be considered “interoperable” only if it allows the user to access and use all electronic health information, allows the user to exchange all electronic health information with other health information technologies, and meets prescribed standards, specifications, and requirements that will be set out in future regulations.

Key obligations for health information technology vendors

Under Bill S-5, health information technology vendors in Canada would be subject to the following obligations:

• Interoperability requirement: Vendors must ensure that the health information technology they licence, sell or provide as a service is interoperable, meaning it must allow users to easily, completely and securely access and use all electronic health information and exchange all electronic health information with other health information technologies (unless prohibited by applicable privacy law).
• Prohibition on data blocking: The legislation prohibits “data blocking” –practices or acts that prevent, discourage or interfere with access to or the use or exchange of electronic health information. This provision addresses concerns raised by the Competition Bureau relating to long waits or unreadable data dumps faced by providers when trying to switch software providers.

Provincial and territorial application

Similar to the Personal Information Protection and Electronic Documents Act (PIPEDA), Bill S-5 will only apply in provinces or territories that do not have requirements that are substantially similar to or exceed those established under the legislation. This means the Governor in Council may, by order, make any provision of the Act applicable in a province or territory if satisfied that the jurisdiction does not have substantially similar requirements.

Enforcement mechanisms

Bill S-5 includes several enforcement tools. The legislation authorizes the government to establish a system of administrative monetary penalties for non-compliance. It also allows the government to set up a system to receive complaints, verify compliance and require vendors to provide information or documents necessary to verify compliance with the interoperability and data blocking provisions.

Next steps and considerations

Bill S-5 will need to proceed through the full Parliamentary process before becoming law. Much of the underlying substance of the Act will be left to regulation, including the specific standards and specifications for interoperability. You can follow the progress of the bill here.

In the meantime, health information technology vendors and health-care providers may wish to:

• Review the Shared Pan-Canadian Interoperability Roadmap published by Canada Health Infoway, which the legislation is intended to accelerate.
• Examine existing interoperability standards to anticipate the government’s likely direction.
• Assess whether existing contracts and processes are hindering interoperability or leading to data blocking.
• Consider how to incorporate interoperability into products and services by design.

MLT Aikins has a broad technology, intellectual property & privacy team with many years of experience in the implementation of health-care technology and solutions. We will continue to monitor Bill S-5 as it advances through the legislative process.

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