$3M hospitals bailout ‘balances’ the books
Mark Clairmont | MuskokaTODAY.com
HUNTSVILLE/BRACEBRIDGE — Hospital funding that solidified Tory support in Muskoka may be a moot point after all.
That is if you believe the latest numbers from the Muskoka Algonquin Healthcare (MAHC).
They claim, rather erroneously alone, to having “achieved its sixth balanced budget in the last seven years.”
In fact, they claimed to have “realized a modest operating surplus for the 2017-2018 budget year.”
This, unlike most past years when they had to go public in begging the previous Liberal government to bail them out in the millions — and help them truly balance their books.
After the fact. Isn’t that like saying the bandage stopped the wound?
In a release Monday, MAHC says: “The board of directors and administration have worked very hard to reduce and eliminate operating shortfalls despite unique challenges we face under the funding formula,” says incoming board chair Phil Matthews, who is replacing longtime Liberal and chair Evelyn Brown.
“To balance and post an operating surplus, MAHC had to overcome a $4.6-million budgeted operating deficit by reducing costs where possible and by advocating for additional funding.
“A balanced position is truly an outstanding accomplishment,” the release goes on to boast.
Now, here’s the truth:
“The positive year-end position is thanks to over $3 million of additional funding from the province, $740,000 in increased patient-related revenues, and approximately $735,000 in cost savings.
(Ed. note: Fact check – isn’t that the largest bailout in recent years?)
“We are grateful to the North Simcoe Muskoka LHIN and the Ministry of Health and Long-Term Care for recognizing how the formula disadvantages MAHC and for providing additional financial support.
“I would also like to thank our area politicians for their advocacy,” says Matthews. “We will continue to look at everything we do to ensure we are being responsible financial stewards while ensuring safe, high-quality care.”
But hold on ….
They say that on the heels of receiving the 2017-2018 audited financial statements, the board of directors approved a $79.5 million operating budget for 2018-2019, which because of the current funding formula and without additional funding equates to a budgeted operating shortfall of $2.5 million at this time.
“The operating budget approved by the board is really a status-quo budget,” says Matthews. “The 2018-19 operating plan maintains our existing programs and services and staffing despite growing financial pressures.”
He says the budget reflects contractual wage and benefit increases including the impacts of Bill 148, which mandates changes in workplaces across Ontario, notes Natalie Bubela, hospital CEO.
“The budget also addresses rising costs of energy, drugs and supplies, new quality care requirements and safety regulations, and maintenance costs to support two aging buildings,” says Bubela in the same release. “We have also accounted for additional staffing costs associated with anticipated higher patient occupancy and volumes.”
In response to advocacy, the Ministry through the LHIN has pledged further funding support to MAHC for 2018-2019.
There’s more ….
Beyond the initial $750,000 announced in the 2018 Ontario budget, MAHC is receiving a further $1 million in base funding and about $700,000 in surge bed funding to help address cost pressures and reduce the budgeted 2018-2019 operating gap.
“The board remains committed to continued advocacy for a long-term solution to MAHC’s funding challenges,” says Matthews.
“Together with local politicians, we will be sending a joint letter to the ministry to request a joint meeting to advocate and discuss much-needed changes to the funding formula that recognize the unique challenges of medium-size multi-site community hospitals.”
Perhaps a cottage country health care team chow-wow in Muskoka with six-time elected MPP Norm Miller and premier-designate Doug Ford would be a good start this summer.
