Communications

Local Share Announcement

For the attention of Hospital CEOs, CFOs, OHA Board of Directors and CACN Members

Hilary Short, President and CEO

Local Share Announcement

Today, Ontario’s Ministry of Health and Long-Term Care (MOHLTC) announced very significant, positive changes to its “local share” policies regarding hospital capital renewal.

According to a media release, the Government of Ontario will assume 90 percent of the eligible construction costs for hospital projects. In the past, most capital cost share rates varied from 50 percent to 80 percent, based on a variety of factors including geography and project type. Under this new policy, hospitals will be responsible for only 10 percent of construction costs, as well as the costs associated with the purchase of new and replacement equipment.

The media release also states that the government will cover 100 percent of eligible construction costs for longer-term mental health programs, 100 percent of the eligible costs related to the planning and design of hospital projects, and 100 percent of the costs for eligible new major radiation therapy equipment.

The media release and a backgrounder with additional details are available at www.health.gov.on.ca.

The OHA welcomed today’s announcement because it:

      • Increases the share of funding that the Government will be responsible for with regard to hospital capital renewal projects;
      • Provides a uniform funding standard for all hospitals across Ontario, regardless of type or region, and;
      • Will make it easier for hospitals and their communities to raise the funds necessary to begin and complete much-needed hospital renewal projects.

The OHA has for some time advocated for a fairer, enhanced local share policy regarding capital renewal. We will work with the Government of Ontario to clarify the details of this new policy, and to ensure that hospital capital renewal remains an investment priority.

If you have any questions about today’s announcement or this Bulletin, please contact Lou Reidel, OHA Director of Health Finance and Research, at 416-205-1320 (email: lreidel@oha.com).