Hospital predicts third deficit

Northumberland Hills Hospital (NHH) expects to run its third consecutive deficit budget in 2009-10. That was the message that President and CEO Robert Biron gave to Cramahe Council last week.

Despite the cost-saving actions taken by the hospital and its staff, this year's operating deficit promises to be the largest in three years, coming at about $1.2 million. That's a jump of a million over the 2008-9 budget year, despite saving $1.4 million in operating efficiencies.

The future doesn't look any brighter either, unless the hospital makes some significant changes. A provincial steering committee has advised the hospital to prepare for budget increases of 0-2% in the budget years beginning in 2010.

The president doesn't believe those numbers offer realistic funding targets with wages, services and inflation all expected to rise. The provincial government expects hospitals to have balanced budgets.

In response to a question from Councillor Ed van Egmond, the president stated that some hospitals are much worse off and some are much better off than Northumberland Hills. Forty per cent of the 157 hospitals in the province last year were in deficit, despite the provincial regulation. Of nearby hospitals, Mr. Biron commented that the Lakeridge Health Centre in Oshawa and Peterborough Regional Health Centre are "in deep trouble".

To ensure that the hospital improves its financial position the NHH is embarking on an accountability plan and engaging the community in a program to achieve financial balance in the 2010-11 and 2011-12 budget years.

The goal is to "ensure high quality, safe, accessible and sustainable hospital services within the resources available."

To reach its target the hospital is engaging its stakeholders in the development of its plan. It is expected the plan will involve making choices and removing or re-aligning some services which are not compatible with the hosptial's strategic plan.

The process taken by the hospital will be proactive, transparent and inclusive. A 28-member citizen advisory panel will be a significant force in the process, with the hospital board of directors making the final decisions. The members of the panel have been selected by gender, age and geographic location in the hospital cachement. They will attempt to identify the hospital's core and non-core programs.

The hospital will host an open round table discussion on November 14.