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OSMH considering service adjustments to balance the books

6/26/2012 12:00:00 AM

(Orillia, ON – June 26, 2012) – With no new funding to recognize inflation, increased demand and costs, as well as changes to the provincial funding formula, Orillia Soldiers’ Memorial Hospital (OSMH) is considering service adjustments to balance its budget.

 

Since the budget process began in November of last year, the hospital has identified approximately 100 initiatives, either revenue-generating or cost-saving, to balance a projected deficit for 2012/13 of $6-million.  Some of these initiatives include:

  • New parking rates
  • Increases to cafeteria food prices
  • Maximizing diagnostic imaging and laboratory revenues
  • Regional Support Services Integration (RSSI) including food services, housekeeping, plant and maintenance
  • Moving adult chemotherapy services from OSMH to the Simcoe Muskoka Regional Cancer Centre, while maintaining pre and post cancer related care such as screening, surgery and palliative care
  • Divestment of outpatient chiropody services, as well as pain, cardiac rehab and heart function clinics, when and if a community partner is found
  • Closure of 5 beds on Harvie 2
  • Closure of 2 beds on Paediatrics
  • Implementation of a skills mix change on C6
  • Continued focus on sick-time and overtime management
  • Management and internal service reductions, non-filled vacancies
  • Continue to seek opportunities to transition appropriate services out of hospital that can be provided in the community or by other health care providers

According to Elisabeth Riley, President and CEO, “all Ontario hospitals are required, by law, to balance their budgets.  Through this process all areas and levels of the organization were reviewed and we have had to make some difficult choices; while never compromising on our promise to deliver quality and safe patient care.”

 

“We want to be candid about the realities that are expected to confront OSMH – as well as hospitals across the province – moving forward.  This year and beyond will not be easy.”

 

OSMH’s budget pressures will climb 6 per cent this year, while provincial government funding will not increase. 

 

“Unfortunately drug, utility bills and wages have not been frozen like our hospital budget,” says Riley.  “We are facing a 6 per cent increase in cost with 0 per cent from the government.”

 

Even with all these changes the total staff hours at OSMH is not expected to decrease due to increased demand and revenue for kidney care, as well as reinvestments in orthopaedics and other areas such as information technology.

 

OSMH has made great strides in cost-saving and quality improvement initiatives since 2007, through improved utilization, increased revenue generation, efficiencies in clinical and non-clinical programs, consolidation of ambulatory care clinics and bed closures.

 

Despite all these efforts, operating costs continue to rise, demands for service continue to grow and revenues are not keeping pace with inflation.  OSMH has made great progress over the past four years to battle back from a deficit of $5-million in 2009/10 to end 2011/12 with a surplus of $600,000.  The next three years will continue to be challenging.

 

The final budget integrating all these recommended changes will go to the OSMH Board of Directors for approval at their July 31 meeting, and then it must go to the North Simcoe Muskoka (NSM) Local Health Integration Network (LHIN) for final approval.

 

As the hospital works towards the final approval of our budget we welcome feedback and comments from the community on the recommended changes. Community consultations will be announced in the coming weeks; in the meantime, feel free to contact the hospital at info@osmh.on.ca or at 705-327-9179.

 

 

Orillia Soldiers’ Memorial Hospital (OSMH) is located in Orillia, Ontario (just 114 kilometres north of Toronto) and serves more than 440,000 residents in North Simcoe Muskoka. OSMH provides a comprehensive range of programs and services, including medical, surgical and emergency care, dialysis, obstetrical and paediatric care, complex continuing care, mental health and rehabilitation services. For more information please visit our website at www.osmh.on.ca.

 

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For more information or to arrange an interview, please contact:

 

Terry Dyni, Director, Community Relations

Tel.: 705-327-9179

E-mail: tadyni@osmh.on.ca      

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