Now, the Ontario Hospital Association (OHA) is sounding the alarm. Hospitals on the other side of the province are facing unprecedented financial pressures and could soon be facing harrowing choices in the years to come. Anthony Dale, president and CEO of the OHA, addressed Members of Provincial Parliament (MPPs), outlining the pressing issues confronting the healthcare sector. Despite this, Ontario hospitals have some of the lowest per capita funding rates in the entire country. This shortage of support with rising costs adds even more pressure onto the healthcare system.
Ontario hospitals have been grappling with increasing expenses, which are rising by approximately six percent annually, driven by population growth, aging demographics, and inflation. The provincial government only recently raised their contribution by approximately four percent. Even with this boost, the shortfall persists and is expected to continue indefinitely. Our hospital sector is in a crisis with an aggregate structural deficit estimated at $1 billion. Yet this moment calls for an unprecedented and immediate pivot to a more sustainable financing approach.
Financial Challenges Ahead
During a speech to MPPs, OHA President Anthony Dale underscored the need for financial predictability for hospitals to plan by. He requested multi-year assumptions for the next three years. Without this clarity, healthcare providers will continue to be put in the position of having to make difficult decisions that would put patient care at risk.
These measures alone will not meet the rapidly inflating pressures on the system,” Dale explained, underscoring how complicated today’s healthcare environment has become. He pointed out that most hospitals are already operating at max efficiency. When added to years of existing cuts, there is no way to preserve service delivery without catastrophic cuts.
“Ontario hospitals are already the most efficient in Canada. The HSSP (Hospital Sector Stabilization Plan) exercise proves that further significant cost-saving measures would likely include program consolidation with service impacts, closure of non-core inpatient services and spending reductions in core inpatient services.” – Anthony Dale
Patient Care at Risk
Yet as Ontario’s hospitals try to weather these financial challenges they’re starting to feel the impact of chronic underfunding. Many facilities began to treat patients in hallways and other makeshift places. This massive shift from public to private is extremely concerning when you consider the type of care being provided. CHEO, the Children’s Hospital of Eastern Ontario, is being squeezed. It fights tooth and nail to keep its service quality high in the face of ever-growing obstacles.
Dale underscored that hospitals are committed to addressing all the potential factors that might inhibit patients’ access to care. While they offered solidarity, he stressed that systemic relief is still lacking in what’s being offered. Many of their institutions have already faced painful decisions about staff and faculty workforce cuts. They are financially stressed and have reduced the number of jobs for healthcare workers.
The Importance of Health Care Funding
Our health care system is the bedrock of a strong, inclusive, resilient and competitive economy. As Ontario moves out of the COVID-19 pandemic and its accompanying strain on healthcare funding and delivery, all stakeholders—especially government—need to focus on long-term fiscal sustainability. The OHA has been encouraging more investment in the hospital sector in the state. Without appropriate investments, quality of care will suffer and be felt in the health and wellness of Ontarians.
