Hospital gets $300 million in historic funding arrangement

NEWS RELEASES

DAVID ORAZIETTI, MPP

ONTARIO MINISTRY OF HEALTH AND LONG-TERM CARE

******************** Orazietti announces historic multi-year funding for Sault Area Hospital

$300,343,100 over three years for Sault Stre. Marie patient care

Sault Ste. Marie - The McGuinty government is ensuring better access to better care for residents of Sault Ste. Marie by providing Sault Area Hospital with $300,343,100 in additional funding over the next three years, David Orazietti, MPP announced today.

This funding is part of the first multi-year funding announcement in Ontario history.

"Our government is committed to improving Ontario's health care system and for the first time in Ontario history we are providing hospitals with stable, multi-year funding," said Orazietti.

"This landmark funding model will allow hospitals, such as the Sault Area Hospital, to more strategically plan for the care needs of their patients, manage their finances and develop balanced budgets."

"In addition to being stable and transparent, this landmark-funding model recognizes the unique needs of different sized hospitals across the province and adjusts for efficiency and demand," said Orazietti.

For the first time in the province's history, every Ontario hospital will know their funding allocation for three years in advance.

Under previous governments, planning patient care needs was difficult, as hospitals were unaware of their funding beyond one year.

Sault Area Hospital will receive an additional $97,257,500 this fiscal year in new operating funding.

This new funding, plus the funding to reduce wait times announced in May 2005 of $700,092, brings the total operating funding for SAH to $97,957,592 for 2005/2006.

Sault Area Hospital will receive at least $100,815,800 in total for operations in 2006/07, and at least $102,269,800 in 2007/08.

Province-wide, hospitals will receive $12.27 billion in funding this fiscal year, an increase of $650 million or 5.1 percent in hospital operational funding over the previous year, at least $12.6 billion in 2006/07, and at least $13.1 billion in 2007/08.

The McGuinty government has also improved the process of determining how much funding each hospital receives.

In collaboration with hospitals, the provincial government has developed a funding method that recognizes the unique needs of hospitals, how efficient they have been, and whether demand for their services has grown sharply in the past year.

Putting hospitals on stable financial footing is an important part of the McGuinty government's plan for health care - which includes reducing wait times for key procedures, creating Family Health Teams, increasing the number of doctors and nurses, and investing heavily in community-based health care in order to ease the pressure on hospitals and deliver care where patients need it most - closer to home.

***************** McGuinty government gives hospitals historic multi-year funding

Additional $1.75 billion over three years will help hospitals plan for the care needs of their patients

TORONTO, June 21 - The McGuinty government is ensuring better access to better care for Ontarians by investing at least $1.75 billion over three years in new funding for hospitals, Health and Long-Term Care Minister George Smitherman announced today.

It is the first multi-year funding announcement for individual hospitals in Ontario history. "This is the kind of stable, multi-year funding hospitals have long been asking for, and we have delivered," Smitherman said. "It will greatly increase their ability to plan for the care needs of their patients, manage their finances and keep their budgets in balance." Hospitals will receive $12.27 billion in operating funding this fiscal year, at least $12.6 billion for operations in 2006/07, and at least $13.1 billion in 2007/08.

The funding for this year amounts to an increase of $650 million.

Hospitals will receive a 5.1 per cent increase in hospital operation funding over last year. "Hospitals are a cornerstone of our health care system," Smitherman said. "They deliver world-class acute care to Ontario patients. More than half a billion dollars in new funding this year will allow them to deliver even better care, meeting the needs of our growing and aging population now and in the future." As a result of the hospital balanced budget initiative that the government launched last year, 89 of 154 public hospitals are now projected to balance their books for last year.

The government will work closely with hospitals that need more help to improve their financial health and eliminate their deficits by March 2006. "This kind of multi-year funding is extremely good news for Ontario hospitals, and for Ontarians," said Ken Deane, President and CEO, St. Joseph's Health Centre in Toronto. "It will give hospitals the stability we need to adopt a longer term approach to planning and resource management, which will result in better care for our patients." The McGuinty government has also improved the process of determining how much funding each hospital receives. In collaboration with hospitals, a funding method was developed that recognizes the unique needs and different sizes of hospitals, how efficient they have been, and whether demand for their services has grown sharply in the past year. "We are extremely impressed with the funding formula the government has used this year," said Robert Devitt, President and CEO of Toronto East General Hospital. "It is innovative. It is adaptable. And because it recognizes and respects the unique needs of different hospitals, it is fair." Putting hospitals on stable financial footing is an important part of the McGuinty government's plan for health care - which includes reducing wait times for key procedures, creating Family Health Teams, increasing the number of doctors and nurses, and investing heavily in community-based health care in order to ease the pressure on hospitals and deliver care where patients need it most - closer to home. *********************