Ontario intends to change the way it funds hospitals, according to Monday's speech from the throne. (CBC)

Ontario's Liberal government will start its new legislative session with an ambitious five-year plan to create jobs, balance the budget, rein in health-care costs, and attract more foreign students.

As it heads towards a provincial election in October 2011, the government of Premier Dalton McGuinty says it will push an agenda it calls "Open Ontario" — a plan that would leave the recession behind and lay "a new foundation for growth."

"Because growing our economy ... requires that Ontario be open to change, open to opportunities, open to our new world," said Lt.-Gov. David Onley in the first speech from the throne since 2007.

The speech confirmed what has been already reported — that Ontario intends to reshape how it funds hospitals in the province.

The government says health costs eat up 46 cents of every program dollar in 2010. "In 12 years, it could be 70 cents."

The way to control those costs, the government says, is to create a system where "money will follow the patient."

Although the throne speech did not contain specific details, it is believed Ontario will begin rewarding hospitals that provide the lowest-cost treatments. Those hospitals would get more patients, more work and more money.

"Patients will have greater choice about where they can access the best quality treatment," Onley said.

Ontario also plans to create a "climate where business can thrive, create jobs and build innovative new products to sell to the world."

Water technology market $400B US

Chief among the new ideas is Ontario's plan to turn clean water technology into a worldwide business.

Quoting statistics from the Conference Board of Canada, the Liberals say the global market for water technology is estimated at more than $400 billion US per year — and rising all the time.

The Liberals say they will bring in legislation to take advantage of the province's leadership in the field. The new legislation "will build on our strong foundation of water expertise, and make our province the clean water capital of North America."

The Liberals also hope to increase post-secondary spaces for foreign students — by as much as 50 per cent — and use the extra money to help fund costs for Ontario students.

The speech said Ontario will "aggressively" promote Ontario's post-secondary institutions abroad "while maintaining spaces for Ontario students."

And while facing a $24.7 billion-deficit Ontario, says it will lay out a plan to balance the budget.

Onley said the "government will not put economic growth at risk by cutting too much, too soon. Nor will it proceed with spending as if there is no deficit."