Finance Minister Bill Morneau says the federal government has been unable to reach a deal with the provinces and territories on health-care funding.
The federal government sweetened its offer at midday in the face of withering criticism from the provinces, but they couldn't reach an agreement.
Morneau offered $11 billion over 10 years for home care and mental health, on top of a 3.5 per cent annual increase in health transfers to the province.
That was up from the $8 billion and 3.5 per cent that was on the table at the start of the day.
The provinces accused the Trudeau government of refusing to negotiate a new federal health-care funding framework, instead putting forward what the regional ministers consider a lacklustre take-it-or-leave-it offer.
Quebec Health Minister Gaetan Barrette had threatened to walk out if the federal government didn't put more money on the table.