New, Expanded Hospitals Made Possible by Innovative Funding
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
Monday, September 26, 2005
Toronto - The use of an innovative financing model to fund the renewal of Ontario’s hospitals is necessary to ensure improvements to patient care and efficiency are made in communities across the province, said Hilary Short, President and CEO of the Ontario Hospital Association (OHA).
“The OHA strongly supports the use of innovative funding models for hospitals,” said Short. “The opportunity to leverage private sector capital and expertise while keeping the hospital in public hands is good news for communities and public health care.”
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 new hospitals and the modernization and expansion of existing hospitals in communities across Ontario, under its Alternative Financing and Procurement (AFP) strategy, as well as conventional financing means. The AFP strategy involves the private sector in project financing and construction while leaving the finished product publicly-owned and controlled.
“The benefit of capital investments in our hospitals is extremely significant,” said Short. “They help achieve better patient outcomes through reduced wait times and improved system efficiency, while enhancing working conditions for staff, and supporting innovation and cutting-edge research.”
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.
“We are very pleased that these investments have been made, and we are committed to doing what we can to help support the government and our hospitals as these projects move forward,” said Short. “We are excited about the opportunities for expanded access to public health services in communities, and the benefits to patients as a result”.
For further information:
OHA Public Affairs
416-205-1348