Government releases operational review of Health Care Corporation of St. John�s

Julie Bettney, Minister of Health and Community Services, and John Abbott, chair of the board of the Health Care Corporation of St. John�s, today released the final report of the operational review of the corporation.

The review was conducted by Hay Health Management Group, a Toronto-based health consulting firm. The review started in December 2001 and the final report was presented to the department in recent days. The report contains more than 100 recommendations and if fully implemented could realize savings of up to $30 million over the next three years.

"I believe the recommendations of the report provide a solid framework for the direction the Health Care Corporation of St. John�s must take to achieve financial stability," said Minister Bettney. "I commend the corporation on being able to balance its budget for the current fiscal year. Yet we all realize that more needs to be done to see that deficits do not continue into the future."

In sharing the report with the Health Care Corporation, Minister Bettney has asked the corporation to closely analyze the recommendations being made and to report back to the department by May 31, 2002.

"At that time, I anticipate receiving a detailed plan which will put the corporation on a sustainable basis and preserve the quality of patient care for people in this region and throughout the province," said Minister Bettney.

As expected, some of the recommendations of the report refer to measures the corporation has already acted upon to achieve a balanced budget in the current fiscal year.

"I also believe there are recommendations which can be acted upon immediately. I have asked the corporation to proceed with these as soon as possible," said Minister Bettney.

Mr. Abbott concurs that the Health Care Corporation of St. John�s will only implement recommendations which will not negatively impact on patient care.

"We will thoroughly evaluate all of the recommendations of the report before proceeding with any changes. At all times, our emphasis will be on maintaining or improving the quality of care we provide to our patients," said Mr. Abbott.

"The Board of Trustees will be assessing the implementation plan with the intention that there be no layoffs as a result of the recommendations and with the objective of being more efficient and achieving a balanced budget," said Mr. Abbott.

Minister Bettney thanked the board, management and staff of the Health Care Corporation of St. John�s for their assistance in completing the report.

"We will work closely with the corporation as it moves forward to implement the recommendations of the report," said Minister Bettney.

The full report is available on the Web site of the Government of Newfoundland and Labrador at: www.gov.nl.ca/publicat

Media contact:

Carmel Turpin, Communications, Health and Community Services, (709) 729-1377
Karen Shewbridge, Communications, Health Care Corporation, (709) 777-1339

2002 03 27                           2:25 p.m.