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The Ottawa Hospital adjusts spending to balance its 2015-16 budget

March 24, 2015 — Faced with annual expenses that are rising faster than revenue, The Ottawa Hospital will reduce spending to achieve a balanced budget in 2015-16.

Outlook for fiscal 2015-16

Over the next fiscal year, which starts April 1st, the hospital will identify $26 million in savings, or 2.4 per cent, on a total budget of $1.082 billion.

Under a new provincial funding model, the hospital’s revenue has levelled off since 2012. Meanwhile, expenses, such as negotiated salary increases for employees, continue to rise every year, creating a perpetual funding gap.

Affected positions

To date, the hospital has identified up to 35 full-time equivalent positions, out of 11,000 employees, that will be affected. Additional affected positions could be identified before March 31, 2016.

Of the 35 full-time equivalent positions initially affected, 13 are vacant positions that will be eliminated. The net numbers of affected positions that are currently staffed include:

  • 5.2 full-time equivalents in nursing
  • 9.1 full-time equivalents in unionized administrative and support services
  • 4.2 full-time equivalents in other health professionals
  • 3.2 full-time equivalents in non-unionized administrative positions.

In keeping with the language of the hospital’s collective agreements, layoff notices will be issued to unionized staff. However, these notices do not necessarily mean employees will leave the hospital. Rather, affected employees will be either redeployed to other parts of the hospital, or offered early-retirement or voluntary-exit packages.

The hospital is committed to working with its union partners to minimize the number of involuntary departures. Affected staff will be offered early retirement, voluntary exit, or redeployment to another part of the hospital.

The future of hospital funding

In the coming years, a greater share of the hospital’s annual budget will be determined by how well we contain costs and spend limited health-care dollars compared with other Ontario hospitals of similar size and mandate. In particular, the new funding model directs hospitals to look within specific clinical programs for ways to deliver higher quality care at less cost.

Higher quality at less cost

As the hospital has reduced annual spending over the past three years, it has actually seen the quality of patient care improve.  For example:

Media Contact:
Hazel Harding
Communications Advisor
Tel.: 613-737-8460