Ontario hospitals facing funding crunch

The Ontario Hospital Association is warning of service loss if provincial funding for hospitals is not increased.

The Association says many are projecting year-end deficits or have eroded reserves to maintain operations.

In a pre-budget submission, President Anthony Dale says hospitals need predictable, multi-year funding for at least three years to properly plan.

“Costs for the sector have been rising by about 6% per year, primarily due to Ontario’s growing population, its aging population and inflation, in general,” says Dale.

“In recent years, the sector has received annual increases of approximately 4%, leaving the sector with a persistent and deepening structural deficit of approximately $1 billion.”

Dale says Ontario hospitals are already the most efficient in Canada, and further cost-saving measures will lead to a reduction or closure of services.

“There are no easy choices ahead,” says Dale.

He adds that long-standing issues, such as unfunded beds and outdated funding rates, have pushed hospitals into deficits that efficiencies cannot resolve.