$10 Million for Institutional Boards

Ten million dollars was approved in the provincial Budget to ease cost pressures on the regional Health Institutional Boards. Joan Marie Aylward, Minister of Health, said she was pleased this money was allocated to help the Boards with the operation of hospitals, community health centres and nursing homes. "I am happy we were able to provide the Boards with additional funding at this time," said the minister. "This totals $30 million the provincial government has provided to the Institutional Boards in the last nine months. I think that demonstrates our commitment to improving the provincial health system as best we can within our fiscal capacity."

The additional funding will strengthen the fiscal position of the Boards which has resulted from major restructuring over the last number of years. Since 1991/92, cost pressures have resulted from increased patient acuity; increased workload in emergency and outpatient services; an aging population with multiple health and social needs; pay equity; new high cost drug therapies; e.g. chemotherapy, antibiotics; inflation on supply costs; new technology; and increased maintenance costs due to the aging of the equipment and facilities.

Despite the introduction of cost reduction measures and the additional $20 million last year, the regional Boards continue to incur significant operating deficits. Budget reviews are currently underway in a number of regions to identify other opportunities for cost savings. This new $10 million funding will be used to address findings arising in the budget reviews and to meet some special needs throughout the province.

The 1997/98 approved funding by Government for the operation of hospitals, community health centres and nursing homes was approximately $600 million. To address increasing cost pressures in these facilities, Government provided $20 million in 1997/98 and will provide an additional $10 million in 1998/99.

- Since 1991/92, cost pressures have occurred in the health facilities. These pressures result from increased patient acuity; increased workload in emergency and outpatient services; an aging population with multiple health and social needs; pay equity; new high cost drug therapies e.g. chemotherapy, antibiotics; inflation on supply costs; new technology; and increased maintenance costs due to the aging of equipment and facilities.

- To offset some of these cost pressures, the regional Institutional Boards have introduced cost reduction measures over the last six to seven years that have not impacted on patient and resident care e.g. restructuring of administrative and support services. In July 1997, Government provided $20 million funding to assist the regional Boards in reducing these cost pressures.

- Despite the introduction of cost reduction measures and the addition of $20 million last year, the regional Boards continue to incur significant operating deficits. Budget reviews are currently underway in a number of regions to identify other opportunities for cost savings. This new $10 million funding will be used to address findings arising in the budget reviews and to meet some special needs throughout the Province.

1998 03 26

4:58 p.m.

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