March 22, 1999
(Health and Community Services)

$40 million deficit eliminated

Joan Marie Aylward, Minister of Health and Community Services, announced today that regional board deficits of $40 million will be eliminated.

"In 1999, government made a commitment to the people of this province that health care would continue to be a high priority. The commitment included the dedication of all increased federal funding provided through the CHST to health and community services," said the minister. "Today government is fulfilling that promise and in fact, reinvesting beyond that commitment. It is demonstrating that health care is its number one priority."

Regional boards have been dealing with funding shortages for the past number of years and at the end of fiscal year 1997/98 accumulated a combined $40 million budgetary deficit. Government realizes that these deficits must not be allowed to continue. This year the provincial government is allocating $40 million to eliminate deficits accumulated to March 31, 1998 and put the boards on stronger financial footing.

This is the first part of a three part plan which will be implemented to stablize and enhance our health and community services system. The plan will reduce board deficits, implement recommendations of the recent financial review of institutional boards, and provide new accountability measures.

The minister recognized that not all boards have accumulated sizeable deficits. "While many of the regional boards have achieved operational efficiencies and service improvements, some boards are not as far along in the regionalization process and therefore further efficiencies are yet to be achieved," said the minister. In order to help the boards achieve their financial goals the department is implementing a three year plan based on recommendations made during the financial review done last year. Over the next three years operational efficiencies will be achieved by all boards through this planned approach and those saving will be reinvested in the health and community services system.

Media contact: Glenn Bruce, Communications, (709) 729-1377.

1999 03 22