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http://www.cbc.ca/canada/british-columbia/story/2009/07/15/bc-health-authority-operational-cuts.html
B.C. health authorities cut costs to meet budgets
Last Updated: Wednesday, July 15, 2009 | 1:09 PM PT
CBC News
Health authorities around B.C. are taking a scalpel to their operations to cut hundreds of millions of dollars to meet their budgets, according to memos released by the provincial government on Wednesday.
The cuts follow statements by Health Minister Kevin Falcon earlier this week that because of declining government revenue, there will be no more year-end bailouts for budget overruns, and that regional authorities will have to live with the money they were given in the February budget.
The funding for the regional health authorities actually increased this year, but the operational spending had outpaced the increases. On Wednesday, the ministry released the cost-cutting plans of the regional authorities as they were laid out in memos to staff.
The CEO of Fraser Health outlined cuts in travel, administration and overtime, along with laying off or moving staff. The health authority also plans to cut 2,000 elective surgeries during the Olympics, according to a Fraser Health internal memo released by the NDP on Wednesday.
It's a similar story for Vancouver Coastal Health, where there will be cuts in sick leave, overtime and elective surgery. The authority is also looking for ways to generate more revenue.
Interior Health said Tuesday it has already cut 100 administrative jobs. More cuts and longer wait times for elective surgery may be coming. The Vancouver Island Health Authority has increased parking rates.
Managing cost pressures
The minister said the authorities have to "manage" about $360 million in cost pressures this year, and he knows there will be many difficult decisions.
But he also said this will be a positive exercise, as the authorities figure out how to get more for their health-care dollar.
"What they will be doing is taking a very hard look at administrative costs. Probably 40 per cent of all the savings will probably be found through administrative cost reductions," said Falcon.
Falcon did not rule out longer wait times for elective surgery.
B.C. health authorities cut costs to meet budgets
Last Updated: Wednesday, July 15, 2009 | 1:09 PM PT
CBC News
Health authorities around B.C. are taking a scalpel to their operations to cut hundreds of millions of dollars to meet their budgets, according to memos released by the provincial government on Wednesday.
The cuts follow statements by Health Minister Kevin Falcon earlier this week that because of declining government revenue, there will be no more year-end bailouts for budget overruns, and that regional authorities will have to live with the money they were given in the February budget.
The funding for the regional health authorities actually increased this year, but the operational spending had outpaced the increases. On Wednesday, the ministry released the cost-cutting plans of the regional authorities as they were laid out in memos to staff.
The CEO of Fraser Health outlined cuts in travel, administration and overtime, along with laying off or moving staff. The health authority also plans to cut 2,000 elective surgeries during the Olympics, according to a Fraser Health internal memo released by the NDP on Wednesday.
It's a similar story for Vancouver Coastal Health, where there will be cuts in sick leave, overtime and elective surgery. The authority is also looking for ways to generate more revenue.
Interior Health said Tuesday it has already cut 100 administrative jobs. More cuts and longer wait times for elective surgery may be coming. The Vancouver Island Health Authority has increased parking rates.
Managing cost pressures
The minister said the authorities have to "manage" about $360 million in cost pressures this year, and he knows there will be many difficult decisions.
But he also said this will be a positive exercise, as the authorities figure out how to get more for their health-care dollar.
"What they will be doing is taking a very hard look at administrative costs. Probably 40 per cent of all the savings will probably be found through administrative cost reductions," said Falcon.
Falcon did not rule out longer wait times for elective surgery.