Innovative Hospital Financing Beneficial, Necessary: OHA
Ontario Hospital Association
200 Front Street West, Suite 2800
Toronto, Ontario, M5V 3L1
Tel: (416) 205-1345 Fax: (416) 205-1360
Visit our Web Site: http://www.oha.com
Thursday, September 1, 2005
The use of innovative financing models to fund the renewal of Ontario’s hospitals is necessary to ensure that the government’s health care “Transformation Agenda” – which includes reducing wait times, improving patient care, and increasing system efficiency – is successfully implemented, said Hilary Short, President and CEO of the Ontario Hospital Association (OHA).
“Capital investments in our hospitals contribute to improved patient outcomes, help meet the high demand for health care services, improve working conditions, improve efficiencies, and support innovation, research and development,” said Short.
In late May 2005, Public Infrastructure Renewal Minister, David Caplan announced a plan that earmarked $5.3 billion to upgrade, expand and build new hospitals over the next five years. The OHA estimates that Ontario hospitals face up to $8 billion in capital development costs.
Since then, the government has approved the construction of two new hospitals, and the modernization and expansion of five existing hospitals, under its Alternative Financing and Procurement (AFP) strategy. The AFP strategy involves the private sector in project financing and construction while leaving the finished product publicly-owned and controlled. New hospitals slated for construction are in North Bay and Sault Ste. Marie. Montfort Hospital in Ottawa, Credit Valley Hospital in Mississauga, Quinte Healthcare Corporation’s Belleville site, Sunnybrook and Women’s College Health Sciences Centre and Trillium Health Centre have been selected for upgrades and expansions.
“We very much welcome these investments in improving our hospitals, and we look forward to further investments like these in the months and years ahead,” said Short.
In November 2003, the OHA released a report entitled, “Capital Planning and Investment in Ontario’s Hospitals: A Sustainable and Comprehensive Approach to Meeting Patient Care Needs”. The report recommended that governments begin to view hospital capital spending as a strategic investment in the health care system, and allow hospitals to use a range of mechanisms, including debt instruments such as bond issues, municipal levies and alternative financing models, to raise the funds for needed capital improvements.
“The OHA has long supported the use of alternative financing models as one way to fund the construction and modernization of Ontario’s hospitals. They allow hospitals to harness private sector capital and expertise and move forward quickly with projects that will benefit patients and their communities,” said Short.
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For further information:
Chris MacPherson
OHA Public Affairs
416-205-1305