Job cuts at SAH 'speculation' says hospital CEO

As a result of zero funding increases from the Ministry of Health and Long Term Care over the past few years, several Ontario hospitals have been wrestling with financial issues.

The Ministry of Health and Local Health Integration Networks (LHINs) insist hospitals balance their budgets, while inflationary increases still occur in regards to hospital employee wages, services and supplies.

Does that mean job cuts are coming at Sault Area Hospital?

Ron Gagnon, SAH president and CEO, told SooToday after Monday's SAH board of directors meeting any discussion of job cuts at the hospital would be speculation at this point.

"We have a reality with a province whose finances are very strained so I don't see any new funding coming (on top of current base funding) to healthcare, I think healthcare will be lucky to maintain its current funding if not see it shrink," Gagnon said.

"From a proactive standpoint we have to be looking at how we can make sure we deliver our services in the best way that we can."

"As we've always done, with any steps we take, we try to make sure there's a minimal impact on staff, if any at all, and we're going to continue to operate in that mode," Gagnon said.

Gagnon said approximately 70 percent of the SAH annual budget consists of employee salaries, according to last year's financial statements.

"We have to adapt to the new provincial funding model and we're not unique in that, and we (in Northern Ontario) are growing at a much smaller rate than the rest of the province," Gagnon said.

"The funding model is a pie sharing model as opposed to a pie growing, so it's the same funding being distributed across the province, and that creates some challenges for us in a revenue standpoint."

"It becomes a mindset of 'how do we create an organization within that revenue' as opposed to how do you cut out of the organization."

Gagnon said the biggest challenge SAH faces is the need for 50 ALC beds to be opened up, but said he is optimistic talks with the province will eventually lead to that problem being resolved and those beds made available in the community.

Last week, Timmins and District Hospital (TADH) announced it will have to carry out certain measures to balance its budget, including job cuts.

Forty positions (38.7 full time equivalent jobs) are being eliminated at TADH.

Roger Walker, TADH president and CEO, has said up to 10 positions will be cut through attrition and reduced hours, and another 12 to 15 through early retirements and voluntary exits, however that still means some people will be laid off.