Hospital’s year to date deficit smaller than anticipated

Sault Area Hospital (SAH) is in better financial shape than administrators anticipated.

Like many hospitals in Ontario, SAH has budgeted to incur a deficit this fiscal year.

However, the SAH board of directors was told at its virtual monthly meeting Monday that the hospital - though having budgeted to have a deficit of $2.4 million - has an actual deficit of $2 million year to date (April to August).  

“Sault Area Hospital is in line with budgeted expectations year-to-date, showing a lower deficit than planned,” wrote SAH spokesperson Brandy Sharp Young in an email.

“Sault Area Hospital’s budgeted deficit was primarily a result of unfunded operational expenses (cost of living and inflation, insurance, utility costs). As well, similar to other hospitals in Ontario, Sault Area Hospital is experiencing unexpected financial consequences as a result of responding to COVID-19, including reimbursement of COVID-related expenses and lower than anticipated revenues related to volume-based funding,” Sharp Young wrote. 

“The August financials noted a $2 million deficit...and that’s compared to what was planned in a $2.4 million deficit, so that was good news. It was better than planned to be,” said Joe Santa Maria, SAH Finance, Audit & Risk Committee vice-chair at Monday’s meeting.

“COVID, of course, will continue to impact financials as the year goes on. Volume based funding will be negatively impacted...and we know this challenge will persist into the near future for many hospitals in the province,” Santa Maria said.

Earlier this year, SAH received almost $24 million from the province to help with unplanned expenses due to COVID-19. 

“We will continue to work closely with our regional and provincial partners and government to address our financial challenges. We are thankful for the continued support of the provincial and federal governments and their commitment to supporting hospitals and health care during these challenging times,” Sharp Young wrote.