Department of Health
Budget Highlights
Backgrounder
- In line with Government's commitment to preserve and
protect health services, funding to the health sector has
increased by $2 million for the 96/97 fiscal year.
Current account expenditures have risen from
approximately $901 million to $903 million.
- In order to guarantee funding stability to health
services, provided through the regional health boards,
Government has committed to a three budget plan.
Multi-year budgeting is favoured by health boards as a
more appropriate way to organize and plan health service
delivery while implementing long term health reform
initiatives.
- In line with changes occurring generally in the health
sector, funding for community health services has
increased by $2 million. Emphasis on community health
continues in this budget with $150,000 for the treatment
of gambling addictions and the introduction of a second
dose measles vaccination program. As reliance on
in-patient acute care services diminishes and demand for
out-patient, ambulatory and community services grow,
funding adjustments will be made.
- $1.5 million is allocated to the cardiac surgery program
to increase the number of surgeries performed and reduce
the wait list.
- Funding is maintained for the children's dental program.
- Capital works projects for health facilities have been
deferred for this fiscal year with the exception of the
Lion's Manor Nursing Home in Placentia and the nursing
home in St. Anthony. Site redevelopment in the St. John's
region will continue on schedule as operational savings
achieved will offset capital costs. Deferral of capital
works projects were necessary to preserve and protect
front line health services.
- Cost recovery initiatives will be implemented in other
areas of the health sector in order to maintain the level
of funding for health services.
IMPACTS
Health Budgeting - Overview
- The budget for the Department of Health is approximately
$900 million. Recently, many individuals and groups have
spoken passionately about the need to maintain quality
health care in times of restraint. Government has
reiterated time and again, health care is a priority.
Funding has been maintained from the last fiscal year. In
fact, it has actually increased by about $2 million ($901
to $903 million in current account expenditures) for the
fiscal year 1996/97.
- Over the past few years, we have been hearing from the
health care boards, the importance of implementing
budgets beyond an annual budget allocation. Multi-year
budgeting allows health boards to more effectively plan
and implement long term goals and objectives while
avoiding last minute readjustments. Government has now
introduced a three year budgeting process for health
boards. This should ensure more effective planning in the
future.
- Boards will be provided with a three year budget and
asked to identify a plan to operate within their approved
allocation. The budget does not take into account
inflationary costs.
- There will be some reallocation within the budget from
the institutional sector to community health services as
health restructuring initiatives continue to evolve from
in-patient to ambulatory care and from institutions based
to community based.
- Program/service changes will continue to evolve in
response to new technologies, changes in population
demographics and new technologies and trends in health
service delivery. This will result in some adjustments
throughout the province, however, details of that will be
determined by the individual health boards.
- Any restraint measures and/or cost recovery initiatives
health boards implement, will be considered with a view
to preserving and protecting front line health services.
IMPACTS
Capital Works Projects
- Capital works projects for health facilities funded
through the Department of Works, Services and
Transportation have been put on hold for this fiscal year
with the exception of two projects that are nearing
completion. They are the Lion's Manor Nursing Home in
Placentia and the nursing home in St. Anthony.
- Decisions will be made on those projects that have been
deferred as part of the 97/98 budget process.
- This decision was made in the context of the overall
projected budget deficit of $290 million and the
commitment to preserve and protect front line health
services.
IMPACTS
Community Health Initiatives
- The demand for community health services, which includes
such things as health promotion, addictions counselling,
continuing care services, etc., has increased
substantially over the past number of years. The value of
promoting and maintaining a healthy population, which
includes social and mental health as well as physical
health, is now recognized as a key initiative of health
reform.
- The budget for 96/97 fiscal year continues to emphasize
the importance of community health initiatives. An
additional $2 million for community health services has
been included in the global budget.
- As well, funding ($150,000) has been allocated to treat
gambling addictions problems over the course of the next
year.
- A second dose measles vaccination program is also being
funded in the 96/97 health budget.
IMPACTS
Cardiac Surgery
- $1.5 million has been allocated in this year's budget to
reduce the wait list for cardiac surgery.
- This increase in funding will allow for an increase in
the number of cardiac surgeries performed. This will have
a positive effect on the wait list.
IMPACTS
Road Ambulance Program
- The fee structure for ambulance services has changed. The
new structure charges a flat patient fee of $75 dollars
per use. Under the old system, prices varied based on the
distance travelled, ranging between $40 and $60. The new
system of a flat patient fee is more conducive to the
geography and population base of Newfoundland and
Labrador.
- The increase in fees is generally lower than what is
charged in other Provinces. For example in PEI, the rate
is $100 per use. We are now more consistent with what
other provinces charge for use of emergency medical
vehicles, most of which are in the range of between
$70-$100.
- Government will maintain the subsidy for training
ambulance attendants to improve the level and quality of
service in emergency health.
- The Department of Health is enhancing funding to
community ambulance operators with the introduction of a
$100,000 grant structure.
- Despite the fee increase, Government will spend more on
the road ambulance program this year than last year.
IMPACTS
Long Term Care
- The population of this province, as is the case
throughout the country, is aging. The cost of meeting all
the health needs of the aging population is becoming more
and more difficult. Several programs are in place
including home support services and personal care homes
for many seniors.
- Long term care facilities are especially expensive with
the average cost of a nursing home bed being
$4,000/month. Government does not charge residents of
nursing homes the full cost of providing nursing home
care. Rather, residents pay a maximum of $1,510/month,
depending upon their financial situation.
- Government is now prepared to seek, from residents of
nursing homes, a more representative figure of the cost
of receiving that care. The amount collected will depend
upon the individual's ability to pay. Seniors who can
afford to pay the full cost of living in a nursing home
are expected to do so (approximately 12%). Those seniors
who can't pay the full amount will not be required to pay
the full cost.
- This move is expected to generate approximately $3
million annually in revenues which will be redirected to
the health system. It is estimated this will protect
approximately 80 jobs for those employed in the health
system.
- In the Clarenville area, government is allocating funds
for the establishment of 10 long term care beds.
Residents of Clarenville have advocated for long term
care facilities in recent years.