May 16, 1996
(Health)

Provincial budget maintains strong commitment to health care

Health Minister Lloyd Matthews said today the provincial budget reaffirms government's commitment to the provision of quality health services to all residents of Newfoundland and Labrador. Current account expenditures for health services have increased by $2 million over the last fiscal year. There are some reallocations in health spending as health reform initiatives continue to emphasize community health services.

"Government has stated on many occasions that health care is a priority. During the pre-budget consultation hearings, many presentations were given by health organizations and by members of the public urging government to maintain health care funding," said the minister. "As a government, we had some difficult decisions to make in terms of addressing a significant deficit problem. The fact health retains previous spending levels is assurance that we are committed to a strong and sustainable health system."

Three year budgeting for health boards is a new initiative in today's budget. "The regional health boards have made it clear to us that multi-year budgeting was the most effective way to organize and plan health service delivery," said Mr. Matthews. "I am pleased we were able to provide funding stability to the boards over the next three years."

Some budget highlights for fiscal year 96/97 include:

• Current account expenditures for health service delivery have increased by $2 million over the previous fiscal year.
• Health boards have been given three year budgets to allow for greater flexibility in continuing to implement reform initiatives in the regions.
• In line with changes occurring generally in the health system, $2 million has been added to community health services.
• Capital works projects for health facilities funded through the Department of Works, Services and Transportation, have been deferred for the current fiscal year with the exception of two projects that are nearing completion. This does not include site redevelopment in the St. John's region which will continue plans to consolidate acute care services on two sites. Operational savings achieved in this move will offset capital costs in the long term.
• $1.5 million is allocated to reduce the wait list for cardiac surgery.
• $150,000 for the treatment of gambling addictions.
• Cost recovery initiatives in some areas of the health sector.

The preservation of front line health services was most important in making budgetary decisions, said the minister. Any changes within the health budget are being implemented in order to ensure that those front line health services continue to be accessible to all residents of the province.

Contact: Jill Sooley, (709) 729-1377.