From the article: "the federal government to cut the increase in the transfer from 6 per cent to a minimum of 3 per cent annually is unsustainable."
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Actually it is the exact opposite, it was the 6% increase that was unsustainable, by definition.

Government revenues grow, over the long term, in proportion to GDP.  You can get some brief one-time bumps up in the short term, but in the long time revenue always grows in proportion to GDP.  The old Paul Martin Liberals plan was to fix increases at 6% regardless of GDP growth.  With (nominal) GDP growth averaging 3 to 5% in recent it was, by definition, unsustainable.

The Conservative plan to increase health transfers proportionally to GDP increase is the ONLY possible sustainable path.