HomeMy WebLinkAboutHuron Expositor, 2004-09-29, Page 7THE HURON EXPOSITOR, SEPTEMBER 29, 2004-7
IMPORTANT COMMUNITY ANNOUNCEMENT FROM
HURON PERTH HEALTHCARE ALLIANCE
Balancing the Budget
As many community members arc aware, the Huron Perth
Healthcare Alliance, including the hospitals of Clinton, St Marys,
Seaforth, and Stratford, is lacing a serious budget shortfall of a
projected $7 million over the next two years. This situation is not
unique to the Alliance, with Ontario hospitals collectively
identifying two-year funding shortfalls in the neighbounc(xxi of
$1 billion.
The Government of Ontario is requiring all Ontario hospitals to
submit balanced budget plans to the Ministry of Health and Long -
Term Care by October 12, 2004.
Hospitals must also sign an Interim Accountability Agreement,
which includes, among other things, the promise to balance
operating budgets by March 31, 2006 and for each subsequent fiscal
year. If a hospital does not sign the agreement, it will receive no
new funding for 2004/2005 or 2005/2006 - in the Alliance's case,
approximately $2 million.
if thc agreement is not signed, there is also thc risk that thc
government will intervene with the Alliance, directing the
organization to implement changes determined through reviews b)
externally appointed consultants.
The Alliance has been working on identifying options that will
allow us to submit a balanced budget to the government by the
October 12 deadline. As we have said publicly, none of the
decisions we must make to prepare a balanced budget will be
east ones.
Before the government's budget deadline, a staff and community
consultation process will be held to share options and recci‘c
comments and suggestions. This process includes presenting details
of the options at four community open houses. Following thc
consultation, we will finalize the budget and submit it to the
government, along with commentary received during thc
consultation process.
We appreciate the support from our staff and our communities as
we undertake this difficult budgeting process.
Sincerely,
Andrew Williams, Chief Executive Officer,
Huron Perth Healthcare Alliance
Why Does the Alliance Have a Deficit?
• The cost to operate hospitals is rising faster than funding
• The Alliance will receive Tess funding this year than it did last year
• Provincially -negotiated salary increases for nurses, diagnostic/
therapeutic staff and support staff are not traditionally covered by
provincial funding increases
Open House Dates and Times
• Clinton - Royal Canadian Legion (95 Kirk Street, Clinton)
- Monday, October 4, 2004 - 4:00 to 8:00 p.m.
• St. Marys - St. Marys Golf & Country Club (769 Queen Street
East, St. Mar)s) - Tuesday, October 5, 2004 - 4:00 to 8:00 p.m.
• Seaforth - Seaforth Agricultural Society Agriplex (140 Duke
Street, Seaforth) - Monday, October 4, 2004 - 4:00 to 8:00 p.m.
• Stratford - Stratford General Hospital (46 General Hospital
Drive, Stratford), El E Conference Room
- Tuesday, October 5, 2004 - 4:00 to 8:00 p.m.
In order to erase the projected $7 million deficit, the options
for the Huron Perth Healthcare Alliance budget will include
measures to generate revenue, become more efficient, and
reduce costs through a reduction of staff, programs an r `
services. More details will be available at the open houses to
be held on October 4 and 5, 2004 and following the open
houses, information packages will be available from each
hospital site. We invite comments and suggestions on any
part of the budget plan.
1. Community Reinvestment - The Ontario government ha
stated that hospi
care and surgical
services it currently provides that could instead be provided
by community agencies. Based on this govemment
philosophy, the Huron Perth Healthcare Alliance has
identified savings if it ceases to provide services such as ,
outpatient rehabilitation services.
t,
2. Revenue Generation - The Alliance plans to increase
revenues through such actions as raising parking rates and
increasing rental charges for use of hospital facilities.
3. Efficiencies - This involves comparing our costs in all areas
against top -performing Ontario hospitals, and redudng
costs where possible.
4. Bed ar Program Changes - Different scenarios are under
consideration. Cost saving measures range from
consolidating certain programs on one hospital site to an
overall reduction of beds at ail sites.
How the Cost -Cutting
Options are Being
Evaluated:
• Impact on:
- patient and family
- community
r
- staff
- physicians
- Alliance
- core services
• Consistency with Ministry
of Health and Long -Term
Care guidelines
■ . Availability of programs/
services elsewhere
What is the Budget Plan
Process?
Community consultation:
Open houses October 4
and 5, and ongoing
• Prepare final plan to be
approved by the Alliance
Board for recommendation
to the Ministry of Health.
`- and Long -Term Care
•
• Submit plan to Ministry of
Health and Long -Term \
,Care: October 12
• Public announcement of
submitted plan: October 12
• Presentations to
community groups:
Ongoing
fail 2004;
• Antldpated response from
Ministry of Health and
• Huron Perth Nutlet/CO
Alliance staff and
physician consultation:`
Ongoing
approved plana Late 2
If
HURON PERTH
HEALTHCARE
ALLI ANCE
Contact
For details about the budget options
and/or if you wish to make comments
about these options, please call:
Andrew Williams,
Chief Executive Officer,
(519) 272-8202.