Ontario is giving small and medium-sized hospitals across the province more money to help address deficits and other funding challenges.

Health Minister Christine Elliott says the province will spend $68 million this year to help nearly 90 hospitals.

She says the province's existing funding formula has disadvantaged smaller facilities and this is the government's first step toward addressing the issue.

The funding will result in 66 small hospitals receiving a one per cent funding increase.

An additional 23 medium-sized hospitals will receive a 1.5 per cent increase.

The government announced in its spring budget that it would spend an additional $384 million this year on hospital budgets.