December 15, 1998
(Health and Community Services)

The following statement was issued today by Joan Marie Aylward, Minister of Health and Community Services. It was also read in the House of Assembly:

Since I became minister, about 18 months ago we have listened to the people of this province and taken action on a number of fronts. The Provincial Health Forum which we held in May of 1997 was the first of its kind in this province. It allowed people from all over the province, representing health providers and consumers, to come together with government to discuss specific problems and to identify practical solutions to the problems identified. Subsequent to that forum and with the support of my Cabinet colleagues, I took a number of initiatives to strengthen the system. The most significant initiative was taken in the summer of 1997 when Cabinet allocated $20 million to help stabilize the regional health institutional boards. In addition, we provided an additional $5.3 million for physicians' services.

In the fall of 1997, some regional institutional boards raised concerns that they were still experiencing funding shortages. At that time I requested officials of my department to begin a comprehensive review of the regional institutional boards and that review has recently been completed. This is in addition to the Atkinson Report which was completed on the Western Regional Institutional and Health and Community Services Boards and is now also in the department for review. I should say, my officials were well received by the boards and enjoyed a high level of cooperation while working with them.

The reductions to CHST funding for health care in this province have been significant. Despite these reductions in federal funding we have ensured that health care budgets in this province have not been reduced. None the less, we are still experiencing problems in the system. Institutional boards have accumulated significant deficits to the end of 1997-98 despite the infusion of $20 million in fiscal 1997-98. Boards are projecting further deficits of $20-$25 million for 1998-99 and the department has $10 million in new funding to apply against these deficits.

We must not allow the deficits of these boards to grow. We must take corrective action. This province can not afford to fund these deficits from its limited financial resources. We must obtain additional funding from the federal government. We also have a responsibility to ensure that our health care system is managed effectively and efficiently. Many of the regional institutional boards have achieved efficiencies and made service improvements. Some boards are not as far along in the regionalization process and therefore further efficiencies are yet to be achieved.

We have to work with our boards to ensure that together we have a system that is affordable and accountable to the public. Several boards have been experiencing problems and corrective action is being taken. New senior executives have been employed by two boards. A common financial system will be implemented in all institutional boards. All financial statements will now be in a standard format and all audited financial statements for 1997/98 have now been received; the first time in a number of years. Regular meetings are being held between senior departmental and board officials. The challenge to all of us is to provide quality, affordable health care within available funding.

Our integration of programs and services continues and we are implementing the National Child Benefit Reinvestment Plan which is consistent with our Strategic Social Plan. Yet, with all the improvements we have made, I have to say we still face significant challenges in the provincial health system.

We know we will always have waiting lists but we also know that those who need the services the most will receive the services first. In this province we are doing what we can with our limited health resources. We are on the right track and we will continue to work to improve the health system of this province. If we are to maintain the publicly funded health system which we have all come to value and rely on, we will need to ensure our system is as efficient as possible and we will need the increased financial support of the federal government.

I have repeatedly called on the federal government to inject more funding into the provincial health system. Our premier has also spoken clearly and decisively, both nationally and provincially, on this matter. He has advocated to the federal government that the Canada Health and Social Transfer should be increased to ensure the stability of existing health programs and services. Similar calls to the federal government have come from countless health providers and administrators, unions and concerned citizens.

In closing, I want to express my appreciation for the commitment and willingness of my staff and the staff and management of the regional boards to help improve our health system by working in partnership for the benefit of all citizens of Newfoundland and Labrador.

1998 12 15 3:05 p.m.