Employees with the Saskatoon Health Region were warned that tough decisions would have to be made as administration dealt with a massive deficit. This week 70 jobs were cut.
The health region ended the 2015-16 fiscal year with a $35.7 million deficit, and continues to face significant financial challenges, on track for a $31.8-million shortfall in the current fiscal year.
However, that number is still lower than what was originally projected.
“We have made these decisions knowing how difficult this is for employees across out Region,” said Dan Florizone, President and CEO of Saskatoon Health Region.
Florizone said getting the region’s books in order is the most challenging financial situation he’s ever faced working in health care.
“We had hoped to avoid affecting the jobs of any of our over 11, 000 employees. However, we knew that with over 70 percent of our entire budget devoted to staffing, not affecting jobs was extremely unlikely.”
The health region said its goal is to minimize the impact on patient care while protecting services and programs, and that the job losses effect both unionized, and non-unionized positions.
In July, the region announced additional work expected to result in more than $34 million in annual savings after initiatives are all fully implemented.
Those included a two-month temporary in-scope hiring freeze and a voluntary separation package for out-of-scope staff. The voluntary separation program received nearly 40 applications, all of which are now being reviewed.
In addition to the sustainability initiatives, the region’s $1.2 billion operating budget includes the following allocations from the Ministry of Health:
- $12.4 million in incremental funding to cover wage increases agreed to through provincial collective bargaining and the Saskatchewan Medical Association
- $11.8 million in incremental inflation funding
- Saskatoon Regional Health Authority also approved the region’s capital plan including allocation of the Ministry of Health’s $23.9 million in capital funding to the following needed areas:
- $8 million for Royal University Hospital’s heating and cooling systems in support of Children’s Hospital of Saskatchewan infrastructure needs
- $3.65 million for capital equipment
- $12.3 million in infrastructure improvements to be directed towards items such as nurse call system replacements in long term care, elevator replacements and roof repairs.
Saskatoon Regional Health Authority also approved the region’s capital plan including allocation of the Ministry of Health’s $23.9 million in capital funding to the following needed areas:
- $8 million for Royal University Hospital’s heating and cooling systems in support of Children’s Hospital of Saskatchewan infrastructure needs
- $3.65 million for capital equipment
- $12.3 million in infrastructure improvements to be directed towards items such as nurse call system replacements in long term care, elevator replacements and roof repairs.