Multi_Year Funding Bringing More Stability to Hospital Budgets_OHA
Ontario Hospital Association
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Thursday, March 23, 2006
Multi-Year Funding Bringing More Stability to Hospital Budgets: OHA
(Toronto) – The 2006 Ontario Budget builds on the progress that has been made in improving funding predictability for Ontario’s hospitals, said OHA President and CEO Hilary Short.
“Multi-year funding and two-way accountability agreements between the government and hospitals mean more predictability and stability,” said Short. “This will allow hospitals to better plan and meet patient care needs.”
The 2006 Ontario Budget confirmed hospitals’ funding allocations for 2006-07, and provided funding projections for the 2007-08 and 2008-09 fiscal years. This information will help hospitals plan more effectively and create a more stable environment for patients and hospital staff.
“At the same time, given the increasing costs of inflation, growth in patient demand and patient volumes, and the potential cost of labour settlements, hospitals must continue to work with the government in the time ahead in protecting patient care,” added Short.
The 2006 Ontario Budget did not address the long-standing issue of working capital deficits. Ontario’s hospitals currently carry more than $1 billion in working capital deficits. Because of accounting changes, hospitals’ working capital deficits are now recorded as a liability for the government.
“Paying interest charges on these deficits diverts over $20 million from patient care every year,” said Short. “This reinforces the need for hospitals and the government to implement a solution to this shared challenge.”
The 2006 Ontario Budget also announced that Requests for Proposals would be issued for 11 hospital projects, worth $2 billion, in 2006-07. The Budget also allocated $85 million in 2006-07 for cancer care equipment and the repair and rehabilitation of hospitals.
“Investments in modern hospital infrastructure are really investments in modern patient care services,” said Short. “We welcome the progress that is being made on these projects, and will continue to work to ensure that hospitals remain capital investment priorities.”
The OHA is also encouraged by the Government of Ontario’s willingness to work with the new Government of Canada to address the federal-provincial fiscal imbalance. “We believe that there is a great opportunity for both levels of government to narrow the existing gap and ensure that Ontario’s cherished health care system can meet the needs of patients into the future.”
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