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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.