Report finds most Ontario hospitals in deficit situations

A lack of provincial funding is being blamed for a rise in hospital wait times.

The Canadian Centre for Policy Alternatives finds hospital wait times are up 52% over the past five years, while the time it takes to be admitted to hospitals is up 67%.

Researcher Andrew Longhurst says the situation worsens in small hospitals.

“Smaller hospitals generally have fewer resources to draw upon than large urban hospital systems, including working capital, if they want to backstop shortfalls and maintain service levels,” says Longhurst.

“This report raises concerns about the ongoing financial sustainability of smaller hospitals if provincial funding fails to cover increasing operating costs.”

Longhurst says they found that a majority of hospitals are carrying deficits.

He says while costs have risen an average of 6% each year, provincial funding is providing just 4%.

The provincial budget provided an additional $3.4 billion in healthcare spending, with another $1.1 billion to be added during the 2026-27 fiscal year.

“This falls short of addressing the dire financial situation, and yet, core hospital funding needed to increase by $3.2 billion in the fiscal year ending March of this year,” says Longhurst.

The Financial Accountability Office of Ontario estimates that $6.4 billion in new spending is required.

Michael Hurley, president of CUPE’s Ontario Council of Hospital Unions, worries hospital wait times will only worsen without adequate funding.

“What this report suggests is what we’re looking at down the road here is an intensification of the cuts,” says Hurley.

“We’re looking at ongoing access problems and a degradation in the quality of care. We’re really hoping that the government takes another look at this problem and changes its attitude.”

Health Minister Sylvia Jones defends the province’s healthcare spending.

“This will be the fourth year in a row where we have invested $1.1 billion in hospital annualized operating budgets, which equates to about 4%,” says Jones.

“Last year in particular, we very much focused on is making sure that those hospitals experiencing very high deficit rates, primarily remote and rural, received an additional increase to their operating dollars. We’re going to keep doing this work.”

Jones also wants to ensure that the money provided is going to frontline patient-focused care.