March 22, 2000
(Health and Community Services)

Budget 2000 for the Health of the People

The Government of Newfoundland and Labrador has made a significant investment in health care in Budget 2000, putting health and community services expenditures in the province at approximately 42 per cent of all government program expenditures. $136 million in new spending is committed in this budget alone.

"Health care remains government�s top priority," said Roger Grimes, Minister of Health and Community Services. "Despite a period of significant federal cutbacks, we have continued to invest millions in the health of our people. And, we are doing so again this year."

The total Health and Community Services budget for 2000-01 is nearly $1.3 billion, the largest budget of all government departments.

And, almost one billion dollars has been added for health investments in this province in recent years.

In the past five years, government has increased its health and community services current account budget by $233 million. In addition, in excess of $430 million has been invested for health related capital projects and equipment.

Minister Grimes said government has strategically selected key investment areas in the health and community services system so that funding is applied where it is most needed. Specifically, government is adding $16.65 million to the base budget of the boards beginning this fiscal year, 1999/2000. This is on top of almost $40 million government provided in Budget 1999 that eliminated accumulated deficits of institutional boards to March 31, 1998.

The province also provided additional money to the health and community services system for the past three years. In 1997/98, government added $20 million; in 1998/99, it added $10 million; and in 1999/00 it will have added an additional $31.65 million.

"We want to ensure your health care dollars are spent wisely," said Minister Grimes. "That�s why we have established a special review team to work with the boards to identify core services, priorities, new directions and efficiencies. Following the work of the review teams, boards will begin to implement a three-year action and deficit recovery plan." The minister said government can no longer continue to add millions to the base budgets of health and community services boards. The work of the review teams and the boards is essential in identifying ways to optimize our health system, and begin to define the system of the future.

To ensure our health infrastructure is of a high quality, and that new technologies are available to the people of the province, government has committed millions of dollars for capital renovations, capital projects and capital equipment.

Over the next three years, government will spend $54.3 million on equipment for our health care facilities. Of this, $24.3 million will be spent in 2000/01. This investment will be spent in all regions of the province, and will include equipment such as an MRI upgrade; CT scanners;

cardiac monitors; ventilators; anaesthetic machines; ultrasound machines; mammography equipment; x-ray and laboratory equipment; and furnishings for hospital and nursing home rooms.

Six million dollars has been specifically earmarked for the new Janeway, as part of the St. John�s site redevelopment. Together with the $5 million government spent last year and the $6 million to be raised by the Health Care Corporation�s Foundations, the new St. John�s redevelopment will see $17 million in new equipment.

Two million dollars will be spent at James Paton Memorial Hospital in Gander as well.

Approximately $330 million has been committed for health facilities and renovations in the past five budgets. Examples include the following:

• $20 million will be spent in 2000/01 and 2001/02 for continued work at the $58 million James Paton Memorial Hospital redevelopment in Gander;

• $14.1 million will be spent in 2000-01 on new health centres for Fogo, Bonne Bay and Old Perlican;

• $5.1 million will be spent in 2000-01 to complete the $30 million Melville Health Centre in Happy Valley-Goose Bay;

• $1.2 million will complete the new $8.2 million Harbour Breton Health Centre.

• $3 million will be spent to continue work on the new $26 million Stephenville hospital;

• Approval is given for a new $3.5 million 30-room Janeway hostel.

• Government will also spend at least $500,000 to begin planning for a new $17.3 million clinic and long term care facility for Grand Bank, expected to be open in 2003/04.

• $250,000 will be spent to add eight new beds to the Forteau community health centre;

• $6.3 million will be spent to continue the $10 million, 60-bed Carmelite House in Grand Falls-Windsor.

In 2000/01 

• $8.7 million will be spent on renovations to health care facilities.

• $800,000 will be spent on renovations to the emergency department at the Carbonear Health Centre.

• $700,000 will complete the $1 million redevelopment/ambulatory care project at Clarenville Hospital.

• $500,000 will also be spent on renovations to the exterior of J. I. O�Connell Centre in Corner Brook.

The money will also address fire and life safety issues in the province�s long term care facilities, and other needed renovations to our many health facilities.

With the integration of health and community services we have achieved our goal of delivering services closer to the community. This year, the Department of Health and Community Services will see enhanced services in this area through the implementation of the new Child, Youth and Family Services Act, and through other initiatives such as the National Child Benefit program. In addition, government has approved $410,000 in the 2000-01 fiscal year to support for children with autism. This is part of government�s three-year $2.2 million commitment for autistic children in Newfoundland and Labrador.

Government will also spend another $300,000 this year on implementation of the tobacco reduction strategy, and will maintain its commitment to curb smoking among youth. This is part of a $900,000 commitment over three years to reduce smoking in the province.

$200,000 is also budgeted for the Cervical Cancer Screening Program in western Newfoundland for 2000-01.

$1.3 million is committed in 2000-01 for increases in subsidies and rates for the personal care home industry.

This year will be a big year of change for health care institutions. The $130 million redevelopment of major hospital services in St. John�s will be completed in 2000. As the major centre for referrals for all areas of Newfoundland and Labrador, patients can be assured of improved facilities and quality health services.

The redevelopment includes a new state-of-the art Janeway Children�s Health and Rehabilitation Centre which will provide in-patient facilities for 103 children; renovations at St. Clare�s; transfer of services from the Grace hospital to St. Clare�s and the Health Sciences Centre, and closure of the Grace. Upgrades have also taken place at the Miller Centre at an additional cost of $2.6 million.

In addition to the redevelopment in St. John�s, two other hospitals will also open in the province. In Happy Valley-Goose Bay, a new 24-bed health centre is expected to open in the summer of 2000 at a total cost of $30 million. A new 21-bed Harbour Breton health centre will also open this summer at a cost of $8.2 million.

"We have spent much time identifying the health and community services program areas which require immediate investment in order to ensure Newfoundlanders and Labradorians receive quality care," said Minister Grimes.

Government has approved an annualized investment of $2.8 million in operating funds for the cardiac program to meet current and future demands. In addition, $1.2 million will be provided to renovate and purchase new equipment to enhance the provincial cardiac program. By the fall of 2000, the province will move from 12 surgeries per week to 15 per week. In the interim, government has approved approximately $2 million to improve the cardiac surgery wait list. This funding will give 60 patients the opportunity to receive their cardiac surgery out of province.

Government has approved $3.3 million for improved road ambulance services in the province, and almost $1 million to continue pilot projects in Happy Valley-Goose Bay, Twillingate and Port aux Basques to search out innovative ways to deliver primary health care through a team approach to health and well-being.

Six million dollars is being provided for a King Air 350 air ambulance to replace the old King Air 100. This is in keeping with government�s commitment to provide a reliable and efficient air ambulance service in the province.

Additional funding of $5.4 million is provided for the coverage of new and proven drugs under the province�s drug program, and for increased utilization.

$421,600 is provided for the operation of two new community-based kidney dialysis operations in St. Anthony and Clarenville on a pilot basis. One time funding of $150,800 is also budgeted to purchase four dialysis machines for the two sites.

And, government is committing $2 million to renovate an area at St. Clare�s hospital for the creation of a comprehensive breast centre site. The St. Clare�s centre will serve as a screening and diagnostic facility for the St. John�s area; will coordinate provincial diagnostic activities; and will be the administrative hub for the breast health program.

"The most vital component of our health system is the professionals who commit themselves to helping improve the health and well-being of Newfoundlanders and Labradorians," said the minister. "It is this component which encompasses the largest expenditure associated with the health care boards at 70 per cent of their overall budget."

Minister Grimes said government�s goal is to have a stable workforce for the health sector in the future. The following investments are in support of this goal.

Government is committing $600,000 to give incentives to graduating student nurses who commit to work in this province. Government will also spend $75,000 of a three-year $225,000 program to assist nursing students in gaining experience in rural areas of the province. $1.2 million is provided for the hiring of Nurse Practitioner program graduates who have completed advanced training in their field, have an expanded scope of practice, and are capable of performing many diagnostic tests and procedures, among other duties.

$2.1 million is budgeted to hire new salaried physicians. This is on top of approximately $8.5 million annualized funding provided in 1999-2000 for more than 50 salaried physicians. And, $1.9 million is being added to the $32 million physician services memorandum of understanding (MOU) this year because of increased numbers in fee-for-service physicians in the province.

"Our publicly funded health system binds Newfoundlanders and Labradorians together, and indeed all Canadians," said Minister Grimes. "Government has devoted its efforts to maintaining a quality system in this province, and we strongly encourage the federal government to do so at the national level. We stand proud on our tradition of investments in health care. However, we are also realistic. With the assistance of our special review team, we will ensure that our health care system provides the best quality of services within our fiscal capacity. However, the challenges facing our health care system are national in scope. We require leadership and commitment from the federal government to help solve the funding crisis in health care. Only then can we move to define the health system of the future."

Media contact:

Karen McCarthy, Communications, (709)729-6670.

Carl Cooper, Communications, (709)729-1377.

2000 03 22