The province is putting $20-million toward home and community care and mental health and addictions services that will be spread over five years.
The announcement comes from Premier Wade MacLauchlan and Health Minister Robert Mitchell.
MacLauchlan says the agreement with the federal government will better support Islanders in their communities and in times of crisis.
The money will provide paramedics better support with home and palliative care plus expand digital health records and provide mental health support and services in schools.
A province wide mobile mental health crisis program will also be created.
A second agreement will be signed in 2021 for $25-million for another five year period.