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NLIS 33
March 22, 2001
(Health and Community Services)

Health and Community Services planning for the future

The Government of Newfoundland and Labrador will increase its budget allocation to the Department of Health and Community Services by $162 million in Budget 2001-2002 bringing the department�s budget to $1.4 billion for total gross current and capital expenditures.

"Government is building on its commitment to maintain and improve existing levels of health services and programs," said Minister Bettney. "Our efforts to improve health care require a significant investment of available provincial resources. This investment continues to be the single largest expenditure of government."

The budget allocation responds to the significant growth in health care costs and funding for health and community services programs represents 44 per cent of all government current account program spending.

"All across the country, provincial governments are facing similar cost pressures caused by such factors as an aging population, new drugs and innovative technologies," said Minister Bettney. "Government is faced with the challenge of delivering the kind of health and community services expected by the residents of this province while at the same time ensuring financial sustainability."

Minister Bettney said government is forging ahead to build a new partnership with the province�s regional health care corporations, which are responsible for the delivery of hospital and long-term care services. Government will make an investment of $50 million into the base budgets of these corporations to provide adequate funds to maintain quality services within balanced budgets.

Government is also placing a greater emphasis on community-based health services and population health programs. Health and community services boards will receive additional funding of $7 million toward their base budget for this purpose. These boards deliver community services such as child, family and youth programs.

Government will make significant investments this year to improve on the accessibility and quality of care provided in this province. Among the initiatives in Budget 2001-2002 are:

$3.1 million to reduce wait times and wait lists for patients requiring cardiac surgery and cardiac catheterizations;

$700,000 for new mammography units in Carbonear, Corner Brook and St. John�s to further the commitment toward the development of a comprehensive, province-wide breast screening program;

$5.1 million for anticipated increases in the utilization of the province�s drug subsidy program for income support clients and eligible senior citizens;

$2.1 million to increase dispensing fees to pharmacies from $5 to $6.50;

$1.5 million to continue the recruitment of salaried physicians; and,

$400,000 in increased funding for the Medical Transportation Assistance Program to provide financial help to people who incur high costs accessing medical and hospital treatment.

Targeted funds of $2.4 million will be used for innovations in primary health care as part of the September 2000 agreement by First Ministers on Health Renewal. Primary health care consists of services at the "front line" of the health care system provided by such health professionals as general practitioners, nurses, nurse practitioners and physiotherapists. This four-year program will encourage new approaches which simplify and co-ordinate primary health care services so people receive the right service by the right provider at the right time. These initiatives encourage health professionals to work in interdisciplinary teams to provide improved and co-ordinated services and relieve pressures elsewhere in the system, in particular emergency rooms. Existing examples in this province include the primary health care enhancement projects in Twillingate, Happy Valley-Goose Bay, and Port aux Basques.

Included in Budget 2001-2002 is $25 million for increased salary costs resulting from the occupational reviews completed in 2000 for nurses, LPNs, social workers, and various allied health professionals. "These salary increases have assisted government�s retention efforts to ensure we have qualified health professionals working throughout the system," said Minister Bettney.

Government is continuing its capital expenditure program with an investment of $82 million in Budget 2001-2002. "Government has invested in excess of $450 million since 1995 redeveloping existing health care facilities, building new hospitals and nursing homes, and purchasing new equipment, at a time when there has been increased pressures on the province�s financial resources," said Minister Bettney.

Spending totalling $50 million will occur to support the ongoing capital projects in several places throughout the province. These include:

$17 million as part of the $69 million James Paton Hospital redevelopment in Gander;

$10 million this year for the new Sir Thomas Roddick Hospital in Stephenville, which has a total project cost of $30.3 million;

$2.5 million for the Grand Bank Health Centre, which has a total cost of $17.3 million;

$11. 2 million for new health facilities in Fogo and Bonne Bay;

$0.5 million to commence design work for a long-term care facility in Clarenville; and,

$7.5 million for several renovation projects throughout various health facilities across the province.

Government will also spend $32.4 million for capital equipment throughout the province and will include equipment such as CT scanners, mammography units, and therapeutic equipment for acute care settings, as well as priority equipment for resident care needs in nursing homes.

In addition to these initiatives, the province plans to invest more than $2 million this year in support of an IT infrastructure proposal developed by four health and community services and two integrated boards. This funding will assist the boards to better integrate and co-ordinate the delivery of community-based social programs to clients.

While a major portion of the department�s budget is directed toward providing institutional care, government continues to invest in early intervention and to provide for continued community-based care in areas such as:

$4.8 million is being committed for wage increases to home support workers;

$1.3 million is being directed this year to personal care homes to increase funding to the facilities and to subsidies for individuals.

$5.2 million on programs and services to ensure children get a good start in life through the Early Childhood Development initiative.

Minister Bettney will look to stakeholders to help build a renewed vision for health and community services for the future.

"We want to have a health system in which the people of this province have confidence that it will serve their needs and that of their children," the minister said. "We need to seek consensus on the basic principles necessary to improving quality, ensuring long-term sustainability, providing equitable access, and maintaining affordability and public accountability."

In helping to develop this vision, Minister Bettney will hold a series of regional health and community services forums across the province.

"We need a plan to define core standards for programs and services and one that would lay out a long-term approach to financing health care in the future," said Minister Bettney.

Media contact: Carmel Parsons, Communications, (709) 729-1377.

2001 03 22               4:10 p.m.