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HomeMy WebLinkAboutThe Citizen, 1997-05-07, Page 36PAGE 36. THE CITIZEN, WEDNESDAY, MAY 7,1997 Study shows economic impact of hospitals on municipalities By David Emslie Clinton News-Record While it may have been argued that changes to small hospitals would have no dramatic economic impact on a town, a presentation at the town hall last April 24, proved this argument wrong. During early discussions regarding the restructuring of hospitals in Huron and Perth, the members of the District Health Council task force studying restructuring received information which stated, in part, that "arguments that changes to small hospitals would have dramatic economic impacts are largely unfounded." Three area hospitals, in Clinton, Listowel, and St. Marys, set out to show that community hospitals do have a strong economic impact on their communities, and hired consultants, The Duffy Group, to study the impacts. The results of the studies were documents titled "Economic Impact of a Hospital on a Rural Economy", and the study for Clinton Public Hospital was presented by Jim Van Camp, administrator for Listowel Memorial Hospital, and Heather Campbell, owner/manager of The Duffy Group. Van Camp noted that the thesis for the studies was that hospitals make a major contribution to a small community's overall well­ being. This contribution, he said, is to such a great extent that if a community hospital were to close or see large cutbacks, the community would wither. He outlined what makes small hospitals unique, noting that of the 212 public hospitals in the province, 93 with fewer than 100 beds are categorized as small hospitals.This group, he noted, accounts for fewer than 10 per cent of the total Ministry of Health allocation to hospitals. Small hospitals are an integral part of rural life, and aside from providing essential health services to communities, they also provide jobs, which in turn provide income. Van Camp noted that accessibility to care is as important to rural areas as to urban areas, and noted that there is no public transit in rural Ontario, and thus cars, bicycles, walking, and even horses and buggies are needed to provide transportation to care. "Add it all up, and access to care has a uniqueness known only to those serviced by community hospitals," he stated. Van Camp also commented on the accountability for care in small communities, noting that patients receiving care are friends, neighbours and family members of those providing the care. There is also accountability in that the communities build hospitals, and through that community, the hospital is kept going. "It must be able to stand up to scrutiny," he stated, noting that any changes to a hospital or its services in a small community will be discussed at church, the bank, the post office, the arena and the donut shop. It is interesting to note, he continued, that while all public hospitals have a system accountability, "Nowhere is this put more to the test than in rural or community hospitals." Moving onto the study itself, Van Camp explained that the hospitals decided it was necessary because the economic impact of the facilities on communities "was notably and noticeably absent from the criteria" used by the task force looking into hospital restructuring in the area. The hospitals, he said, wanted to argue that large cutbacks or closures would have an economic impact, but they also needed to quantify that information, and thus the study was undertaken. Campbell first gave a brief overview of the Town of Clinton and CPH before giving some study results. An important point of this overview, she said, was the fact that Clinton does not have a diversified economic base, such as having industries in the municipality. Clinton Public Hospital and the Huron County Board of Education are the town's largest employers, while others include government ministries like the Ontario Ministry of Agriculture Food and Rural Affairs. Noting that the population is aging, she questioned, "is this the time to be reducing beds?" She commented on Clinton's trading area, which services a population of about 13,000 people, and made mention of Huron County's Agricultural sector, stating, "There are more farmgate sales in Huron County than in the whole of Atlantic Canada." Giving a brief profile of CPH, she noted that the hospital, which has been in existence for over 90 years, "has an excellent reputation for providing quality care." Campbell also made note of the community's involvement in the hospital, stating, "I was really quite amazed at the extent to which Doug Fines Reform candidate In a unanimous vote, Doug Fines received the nod from the Reform Party of Canada to represent Huron-Bruce in the upcoming fed­ eral election. Speaking to a gathering at the Maitland Dining Room, Goderich, April 28, Fines discussed five sub­ jects which will be key to his cam­ paign. Stating that "unity be the issue which will negatively affect every Canadian for at least one genera­ tion", Fines called on Reformers to elect at least 75 members from across the country to focus atten­ tion on an alternative to the status quo federalists and separatists. "Reform will add $4 billion per year back into provincial tranfer payments to repair the damage done by the Liberal's $7 billion per year cuts to health, education and old age security," said Fines. He said the Liberal's removal of $24 billion from taxpayers' pockets Brussels man runs for CHP The Christian Heritage Party (CHP) of Huron-Bruce is off and running! With obvious excitement, Henry Zekveld, chairman of the elections committee, announced that Dave Joslin of the Brussels area will carry the Party banner. Joslin and his wife Kathy are the parents of four children. He is employed by Spinrite in Listowel as a dye machinery operator. The other parties have shown that their way of running the country is not working, he said. "Only a return to the heritage of our land will ensure the future of Canada." The party believes that Canada has been blessed by a benefit sought by many but found by few, community supports the hospital." Facts and Figures Figures show that among the people the hospital serves, 30.5 per cent of all patients live in town, while 40 per cent come from the trading area, and 25 per cent come from outside that area. It is important to note therefore, she said, that 70 per cent of the hospital's patients come from outside the town. The total budgeted expense for 1996-97 at the hospital is $5.98 million, and Campbell said that the vast majority of the hospital budget goes to wages, salaries and benefits. Overall, the hospital has an annual payroll of $4.5 million, and employs 140 staff (84.2 full- time equivalents). A large percentage of this payroll is distributed in Clinton and the town's trading area, as the consultant noted that 40 per cent of salaries, wages and benefits go to staff who live in town, while an additional 34 per cent goes to the trading area. The study showed that this money, while being earned locally, is also being spent locally. Staff at the hospital were surveyed regarding their shopping habits, and it was discovered that 84-87 per cent of staff shopped locally. While the staff shop locally, it was also noted that the hospital purchases its goods and services predominantly outside the area. "Ninety-two per cent is spent elsewhere," Campbell started, noting that a large amount of funds go to Ottawa and Queen's Park for such items as CPP and unemployment insurance, while has contributed to the unemploy­ ment rate being stalled at 9.3 per cent. "That money could have been used to buy goods and services and employ people in the private sec­ tor." "One in 25 employees will lose their jobs because of the latest Lib- eral/Tory Canadian Pension Plan premium increase of $1,400 per year. A total 'payroll tax' of $3,270 per employee by 2003 will kill jobs," he said. With regards to the gun law, Fines said Justice Minister Alan Rock believes a "bill written for guns that shoot clay pigeons is more important than Victim's Bill of Rights, the Young Offenders' Act or Bill C745 (the Faint Hope Clause). He thinks our criminals are the victims of society and he has little sympathy for the real vic­ tims, Canadians who are crying, bleeding and broken by those peo­ ple who take the law into their own hands." namely freedom. This priceless benefit must be humbly understood as the liberty to live virtuously in obedience to the will of God. It is a privilege which must be safe­ guarded with constant vigilance, and is not a right that should be taken for granted. Personal freedom matched with personal responsibil­ ity must be restored as cornerstones of Canadian society. The riding association is planning their candidate affirma­ tion and kick-off meeting at the Wingham Town Hall on Friday, May 9 at 8 p.m. The guest speaker for the evening will be CHP's National Deputy Leader, Ian Knight. medical supplies are also purchased outside the area. Using a worst case scenario, the study looked at the impact of the closure of CPH on the community. It revealed there would be the equivalent of 100 full-time jobs lost, and 30 workers would leave the area. Taking into account the fact these workers would have families it is estimated that there would be out-migration of 66 people. There would be «?n impact on the municipal government of $509,802 as a result of taxes at risk of potential loss, and costs associated with welfare. The largest impact the study showed, however, was the contribution to the local economy of $8.8 million. "The spending impact is fairly dramatic," Campbell said when commenting on the $8.8 million figure. This figure, she explained in a later interview, is comprised largely of just less than $2 million in local hospital spending in Clinton and the surrounding region, and $6.8 million in employee spending. Taking that $8.8 million dollar figure into account, along with tax revenues that could potentially be lost on the municipal, provincial and federal level, as compared to the hospital's annual budget of $5.98 million, Campbell questioned what would really be saved if CPH were to close. Concluding her presentation, Campbell said, "The criteria for determining how rural hospitals can be safely restructured without jeopardizing the health of not only community members but also that of the local economy must be carefully considered." A summary circulated following Introducing. DOUG FINES Your 1997 Reform Candidate for Huron-Bruce DOUG IS; •married with 2 teenage children and resides in Ashfield Township •A Huron-Bruce business owner and employer since 1978 •A 1970 mechanical engineering graduate from Sheridan College •A long-time member of Goderich Chamber of Commerce and Goderich Lions Club •Known for continuous support of local sports teams •A genuine reformer, serving on the Huron-Bruce Reform Board since 1991 DOUG BELIEVES IN: •Tax relief for both today’s generation and tomorrow’s •A unified Canada with equality for all provinces •A low-cost government that uses more of your tax dollars for Health Care, Education and Old Age Security and less for interest on debt •A responsible Canada Pension Plan - one that you will be proud to contribute to DOUG OFFERS YOU: •The Commitment! •The Party That Puts You First! •The Warranty Program! •The Opportunity! VOTE REFORM REFORM* HURON BRUCE OFFICE 524-8999 1-800-328-9004 the presentation also concluded that rural communities need viable health care delivery systems to attract new residents and industry; to stop out-migration of workers and existing industry; and to maintain a stable tax base." The summary also stated, "The impact of jobs, hospital and employee spending filters through the local economy in ways that would be profoundly missed, perhaps devastating, if Clinton Public Hospital was not there." Following the presentation, a question was raised by local resident, Dennis Miskie, over whether small hospitals would continue to embrace restructuring, as it will result in downsizing, if small hospitals are using only 10 per cent of the ministiy's hospital budget. Van Camp replied that the government is seeking change, and "the government has a very strict fiscal agenda." He added that he thinks it is important for hospitals to embrace restructuring, "But I do not accept closure." Another local resident, Fred Lobb, noted that many decisions were made by the task force based on false information, and questioned whether the information now available should go back to the District Health Council. Campbell replied that it is now the hospital board's decision on where they wish to take the study results. She added, however, that the provincial restructuring commission is acknowledging there is an impact, "and that, at the end of the day, is what really counts." Van Camp also suggested that the study should be used when the restructuring commission comes to the area, noting, "Keep your powder for when it counts." ELECT DOUG FINES Authorized by William Hayward Official Agent For Doug Fines