Communications

OHA Calls For Realistic Multi-Year Hospital Funding Plan


Ontario Hospital Association
200 Front Street West, Suite 2800
Toronto, Ontario, M5V 3L1
Tel: (416) 205-1345 Fax: (416) 205-1360
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Tuesday, January 18, 2005

Toronto: During their pre-budget presentation to the Standing Committee on Finance and Economic Affairs (SCFEA), the Ontario Hospital Association (OHA) called on the Government of Ontario to protect patient care by significantly revising its current multi-year hospital-funding plan and providing hospitals with stable annual funding.

"We are calling on the government to revisit its current multi-year hospital-funding plan," said OHA Chair Sheila Jarvis. "The existing 3-year plan does not sufficiently account for the actual costs of providing hospital care, and does not provide the kind of stable fiscal environment necessary to hire and retain nurses and other health professionals."

The OHA also welcomed the government’s recent announcement of $200 million in one-time, transitional funding for hospitals as a positive first step, but noted that more needs to be done to protect core patient services from future budget pressures.

"I must stress that even with the new, one-time funding announced yesterday, and even after making these cuts, hospitals will begin the new fiscal year with a $440 million deficit. Without a drastically revised multi-year funding plan, this shortfall will grow to $760 million by the end of 2005-06"

The OHA recommended that the 2005 Ontario Budget include:

  • Transitional funding for hospitals to accommodate the needs of their patients until additional community-based alternatives to hospital care are in place. Without transitional funding, many communities may lose critical patient services now offered only by their local hospitals.
  • Stable, appropriate multi-year funding for hospitals. The existing 3-year plan does not sufficiently account for the actual costs of providing hospital care.
  • Funding for already-approved hospital capital projects, and a commitment to work with hospitals to address the issue of accumulated debt.

"We are confident that with time, commitment, and appropriate funding, Ontarians can have the best health care system in the world," said Hilary Short. "Ontario’s hospitals look forward to playing a key role in helping to build that system."

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For further information:
OHA Public Affairs
416-205-1305