"Ontario hospitals have already started making some "lower risk" cuts in the face of rising deficits, but those alone won't alleviate hospitals' financial strain, the head of their association says, warning there are no easy choices left. The Ontario Hospital Association has told the provincial government in its submission ahead of the spring budget that the sector faces a structural deficit of $1 billion and needs not just more money this year but a predictable, multi-year funding plan."
""Worryingly, our financial reserves also called working capital which are really intended to be for long-term, capital-related expenses like medical and diagnostic equipment or refurbishing and rebuilding hospitals ... those working capital dollars are being used to actually pay for operating expenses, and that is a sign of a sector under real, serious financial (pressure)," association president and CEO Anthony Dale said in an interview."
Ontario hospitals have begun implementing lower-risk cuts such as not filling vacant positions and shifting duties to registered practical nurses. The sector faces a structural $1 billion deficit and requires predictable, multi-year funding beyond one-time increases. Working capital reserves intended for capital investments are being tapped to cover operating expenses, signaling severe financial pressure. Meeting full operating needs would require roughly $2.7 billion in additional funding, but provincial budget constraints limit available resources. The Ministry of Health expects three-year balanced plans assuming 2% annual funding increases, prompting immediate implementation of low-risk cost-saving measures.
Read at www.cbc.ca
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