Ont. Hospital Debt Totals $107 Million, Recent Figures Show
Posted July 19, 2010 9:48 am.
This article is more than 5 years old.
Several Ontario hospitals, particularly in the north, are struggling to balance their books and health care centres across the province racked up more than $100 million in debt this year, recent figures show.
More than one-third of the province’s health care centres (38 per cent) have reported red ink on their books, totaling $107 million. Last year, hospital shortfalls amounted to $154 million.
The most recent figures show Peterborough Regional Health Centre recorded the largest deficit in 2009-10 of approximately $14 million, followed by Sault Area Hospital with $13.6 million and North Bay General racking up $10 million in debt.
Hospitals aren’t allowed to run deficits by law but the centres can receive a waiver if they provide a plan to eliminate budget shortfalls.
Financial woes appear to worsening in northern Ontario where 31 hospitals recorded deficits, up from 20 in the previous fiscal year.
Facilities in the GTA and throughout southern Ontario fared better. Two Toronto hospitals, Bloorview Kids Rehab and the Toronto Rehabilitation Institute, recorded deficits of $1.1 million and $908,162, respectively.
The Hospital for Sick Children, Baycrest and Bridgepoint hospitals managed to eliminate the debt – totaling $20 million – they racked up last year.
And Niagara Health System, which recorded the largest deficit last year, managed to emerge with $19 million in surplus this year.
The Central West region, which includes Dufferin, part of York, Peel and Toronto, didn’t have any hospital deficits.
There’s some concern that even hospitals that are managing to balance the books will run into trouble in the next year. Hospitals’ base funding decreased from 2.1 per cent to 1.5 per cent this year – less than the rate of inflation. But the government insists facilities received a 4.7 per cent funding increase due to one-time payouts.
Niagara Health will have eliminated 69 beds by this spring. A spokesperson from the Ontario Health Coalition said some hospitals will have to reduce service and staff to maintain balanced budgets.
With files from the Canadian Press
