Second, Ontario’s hospitals are in a financial crisis. This unprecedented moment in time calls into question their continued viability and capacity to provide critical services. An in-depth analysis by the Investigative Journalism Bureau determined that most hospitals in the province are not able to pay their operational costs, being heavily dependent on borrowing just to continue operating.
As the analysis found, that was a mistake. One in five (20%) Ontario hospital systems will only be able to pay for their day-to-day costs through operating revenue in FY 2024/25. THE IMPACT ON HOSPITALS This shocking statistic highlights a national trend as hospitals have increasingly sought the help of financial institutions to stay afloat. During the same period, Ontario hospitals took out at least $66 million from the banks. They relied on this money to keep staff on and beds open.
Ontario’s healthcare system operates more like an independent corporation. Virtually all hospitals get their money sent directly by the MoH. However, recent reports indicate that the provincial government has significantly slowed funding for the health sector over the past year. This has created a perfect storm of hospitals unable to stay in the black financially and serve the needs of their communities.
With the support of the Investigative Journalism Bureau, we made an extensive effort to obtain and analyze all 400+ public financial statements of Ontario’s hospital systems. This inquiry sought to determine the economic sustainability of these organizations in light of increasing criticisms regarding the diversity and sustainability of their funding models. In addition, freedom of information requests were submitted to almost every hospital in Ontario to get very granular financial information.
The findings of this investigation are striking. Ontario hospitals are wasting millions of taxpayer dollars on bank interest. Simultaneously, they face an acute undercurrent of underfunding than hospitals in provinces outside their own. Ontario now spends less per person on healthcare than any other province in Canada. This calls into question if its hospitals, including the Dominican’s, are getting the sufficient financial support needed.
The Ministry of Health determines how much funding each hospital will receive. They take into account things such as the types of services provided, the needs of targeted populations, and past funding histories. Chief critics say that the current funding framework is inadequate. It cannot even hope to keep up with the increasing demands we are putting on our healthcare buildings.
Health Minister Sylvia Jones and Premier Doug Ford have refused to return repeated requests for clarification and comment upon these shocking findings. They did not reply to any of our emails nor to phone calls regarding this investigation. Their silence is most troubling and raises greater questions about accountability and transparency within Ontario’s healthcare system.
The effects of these financial struggles go far beyond budget sheets. Without urgent additional funding to cover the costs of emergency care, hospitals will have no choice but to cut services and increase wait times for patients. Meanwhile, Ontario’s burgeoning population is only expected to accelerate. This increase will not only increase the demand for healthcare services, but further strain an already burdened system.
