Ontario's Hospitals Urge Prime Minister to Fulfil Campaign Promises

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

Tuesday, July 27, 2004

TORONTO – On the eve of the Premiers' meeting on health care in Niagara-On-The-Lake Ontario, the Ontario Hospital Association (OHA) is urging Canada's premiers to hold the federal government accountable for its health care promises.

"Now, more than ever, it is important for all levels of government to work together in the shared interest of quality patient care, to secure the future of our health system and to ensure Prime Minister Martin lives up to his government's commitments," said Hilary Short, President and CEO of the OHA. "Given the financial challenges facing the provinces and relentlessly-rising health care costs, health providers are in need of predictable, adequate federal support," added Short.

The urgency of federal action is underscored by yesterday's announcement that annual hospital funding allocations from the government of Ontario will increase by 4.3 per cent this year, approximately half of what hospitals in Ontario need to maintain services at last year's levels.

"The OHA appreciates the annual increase granted to hospitals by the province, but the reality is that Ontario's hospitals face a significant funding shortfall in meeting patient care needs in communities throughout Ontario. The need for long-term, sufficient federal funding exists now," Short added.

The Prime Minister made a number of health-related commitments during the recent election campaign, including an immediate funding infusion, a commitment to a National Wait Times Reduction Strategy and a National Home Care Program – three initiatives that should have a dramatic impact on hospitals' ability to provide high quality, timely care for patients.

To that end, the OHA has written the Prime Minister and Health Minister directly, outlining the OHA's support for these commitments to reduce wait times and transform the health system.

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BACKGROUNDER:

Hospital operating costs are increasing at an unrelenting rate, largely due to factors immediately outside of the control of hospitals. Hospitals face cost increases of approximately eight per cent which breaks down as follows:

Serving the health care needs of a population that is growing in size by almost 150,000 people each year – 1.2%
Providing care to our elderly and their more complicated health needs – 0.4%
Paying for increases in modern surgical supplies and equipment to keep up with the latest changes in treatment – 0.4%
Drug costs – 0.3%
Physician payment increases - 0.4%
Utilities, insurance, food and equipment depreciation - 0.6%
The balance of the increase to hire more health care professionals in order to keep pace with a growing and aging population, health and safety initiatives, as well as increases in wages, salaries and benefits.

The 2004 Ontario Budget outlined a 4.3% increase for hospital funding this year ($470 million), which falls short of hospital needs in maintaining patient care services.

The OHA recognizes the responsibility that hospitals have to manage taxpayer funds as prudently and effectively as possible. As an example, two recent reports found that Ontario hospitals are the most efficient in the country.

In addition, the OHA has established broad-based and comprehensive Task Forces on Efficiency and Integration – to identify any additional savings that may exist and additional opportunities for hospitals and other health care providers to work better together.

For further information:
Stefan Baranski, OHA Public Affairs
416-205-1305