Government launches best practices review of two health boards

Health and Community Services Minister Elizabeth Marshall today initiated an external best practices review of the Western Health Care Corporation and Grenfell Regional Health Services board at the request of both boards to determine the best way to meet the health needs of the region within available resources.

HAY Health Care Consulting Group has been contracted to identify and review the proactive steps the boards have taken to manage financial pressures; to assess opportunities for improvement and to assist the boards in developing financial plans to achieve a balanced budget in 2004-05 and retire the accumulated deficit over a maximum ten-year period.

"Improving health care service delivery and sound financial planning is important to ensure the sustainability of a quality health care system for our future," said Minister Marshall. "We are pleased to be working collaboratively with the boards to restore financial health to the regions."

"We need this review and we want it," said Bernd Staeben, chairman of the Western Health Care Corporation�s board of trustees. "Once it is completed, the review should point out ways that we can effectively provide services to Western Newfoundland and it should show whether or not we have enough resources to fulfill our mandate."

Western Health Care Corporation currently has a $21 million accumulated deficit that is projected to increase an additional $3 million this year, for a total of $24 million by March 31. Grenfell�s accumulated cash deficit is currently $2.6 million, with an additional $700,000 projected for a total of $3.3 million by March 31.

"The Grenfell Regional Health Services board welcomes any recommendations from the HAY Group that will facilitate the maintenance of current service levels and ensure long-term sustainability of quality health care in the region," said Robert Mesher, board chair, Grenfell Regional Health Services.

"No decision on any debt management strategy will be made prior to the conclusion of the best practices review," added Minister Marshall. "It is important that we work with the boards, let the review take its course and not second guess the outcome."

The HAY group focuses on improving organizational effectiveness. The firm previously completed a successful operational review of the Health Care Corporation of St. John�s assisting the board in achieving $14 million in savings with minimal impact on staff and health consumers, and begin debt retirement payments over the last two fiscal years.

The Western and Grenfell review will begin this week and its anticipated completion date is mid-May.

Media contact: Carolyn Chaplin, Communications, (709) 729-1377

2004 03 10                                        3:10 p.m.