NLIS 5
October 16, 2001
(Health and Community Services)

 

Department now reviewing deficit plans

Health and Community Services Minister, Julie Bettney, and Newfoundland and Labrador Health Boards Association Board Chair, Des Dillon, agreed today that the process for reviewing board deficit plans will occur as expeditiously as possible so boards can initiate actions to balance budgets for this fiscal year.

"The Department of Health and Community Services and the health boards have a clear role in the management of health budgets," said Minister Bettney. The minister identifies the health services mandate and delegates to the health boards the authority to deliver those services to the population in each region. Each year the health boards submit proposed budgets to the department for the cost of delivering the services according to the needs of each region. When the proposed budget exceeds the funds available, the minister has the responsibility to approve deficit financing, accept the health board's suggestions for budget cost reduction or identify alternative cost reduction measures. 

The minister, in September, asked boards to submit new plans to reach a balanced budget and the minister must now exercise the authority to approve or disapprove the new budget submissions. 

Prior to submitting the plans for balancing budgets, the minister asked all institutional and integrated health boards to enter into a dialogue with the public sector unions. This dialogue would allow the unions to examine board proposals and provide alternatives. This process culminates today with the submission of the board proposals, inclusive of union input, to the minister.

Minister Bettney and Mr. Dillon stated that departmental officials will now begin to review on a board-by-board basis the submissions brought forward. First priority will be given to identifying and approving measures which do not impact on services or jobs. Should sizeable deficits remain, the department will support the boards in taking appropriate action to reduce the deficit.

"Government and the boards remain committed to achieving balanced budgets for this fiscal year," said Minister Bettney. "This is necessary to ensure in the short-term the financial sustainability of the system for this year. I look to the outcomes of the current Health Forums to help shape a sustainable health system for the future."

Media contact: Carmel Turpin, Communications, (709) 685-4624
                      John Peddle, (709) 364-7701, ext. 317.

2001 10 16                             4:10 p.m.


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