Newfoundland and Labrador Health Services (NLHS) has been proactive to implement these cost-saving measures. This move follows the province announcing an increasing deficit of $626 million. CEO Pat Parfrey notes that he took an ambitious new direction. The local health authority, which has been in place for two years now, continues to actively seek out opportunities to eliminate avoidable costs in smart and coordinated healthcare testing. Against that backdrop, this initiative comes at a critically important time. No surprise then that a staggering 42 percent of the province’s budget for 2025 is earmarked for health care.
Last week, finance minister Siobhan Coady delivered a fiscal update. She spoke to the deep fiscal crisis that has gripped Newfoundland and Labrador. Parfrey recognized that the province must make some smart financial choices, considering its deficit is expected to grow to $70 billion by 2040. He stressed the need for NLHS to be smart and efficient as well as sustainable in its operations.
Reviewing Health Services
The provincial government is currently considered NLHS. This top-to-bottom re-examination will measure the efficacy of current health services as well as identifying gaps in the system, regionally. Parfrey was happy to hear of this review, explaining that it is in step with NLHS’s focus on fiscal prudence and long-term sustainability. He remarked, “We have to be ensured that we have an approach to financial sustainability because we have a responsibility for delivering care to 540,000 people.”
Cassie Chisholm, vice-president of provincial hospital systems with NLHS, had made a similar case for the importance of this review. She signaled that the organization would put an “unrelenting spotlight” on making sure the care was suitable. That means we need to start by looking at what we’re already doing and stop doing the medical procedures and tests that aren’t really needed.
Addressing Unnecessary Testing
Of greatest concern, as emphasized by NLHS, is the rampant rate of “unnecessary” testing that plagues our healthcare system. Parfrey noted, “It’s trying to get the balance between what’s necessary and unnecessary is the challenge.” The health authority said it would take a series of actions to reduce waste, such as rethinking its use of agency nurses.
To promote additional healthcare process efficiencies, NLHS will support a “choosing wisely” culture among its practitioners, focusing on the importance of evidence-based medicine. Parfrey stated, “We need to get control of that, so we’re going to put a particular focus on choosing wisely an appropriateness of care over the next period of time.” This is aimed at putting patients first by ensuring they get the tests and treatments they need, when they need them.
Looking Ahead
As NLHS continues to address these fiscal constraints, it is focused on providing the highest quality continuum of care possible across Newfoundland and Labrador’s diverse geography. Parfrey emphasized that now is an opportune moment for this transformation: “And now is the time to do it. So that coincided with the desire of government as well.”
