Saskatoon Health Region ended its 2013-2014 fiscal year with a $1.3 million surplus and received board approval today to proceed with another balanced budget in 2014-2015.
The Region began the year with a $34 million savings plan as part of its balanced budget. In 2013-2014, the Region was challenged with higher than expected patient volumes including 20,000 additional inpatient days compared to the previous year.
“Employees, care providers and leaders worked very hard this year to combat our large shortfall and still provide exceptional care for patients,” says Saskatoon Health Region’s Vice-President Finance and Corporate Services Nilesh Kavia. “We met this challenge without resorting to layoffs, which could have resulted in more than 300 people losing their jobs to save this amount.” Human resources account for approximately 80 per cent of the Region’s expenditures.
2014-2015 budget approved
The total operating budget for 2014-2015 is $1.14 billion, including a spending increase of $43.8 million in expenditures ($20.7 million for collective bargaining increases). It also includes a plan to again reduce or avoid costs by $30 million, generate a modest surplus and begin repaying accumulated deficit and invest in capital and infrastructure projects.
The savings and cost avoidance initiatives proposed for 2014-2015 include:
- Managing Volume increases through patient flow, length of stay and additional bed capacity ($17.4M)
- Managing Supplies through Provincial Procurement ($2.0M)
- Resource Demand Optimization ($3.4M)
- RPIW Replication ($1.2M)
- Position Optimization ($6.0M)
Infrastructure sustainability remains a priority for Saskatoon Health Region, and the 2014-2015 capital budget invests approximately $59 million in capital and infrastructure projects:
“Our budget this year is aligned with our strategy to meet emergency department wait times and other strategic targets,” adds Kavia. “We have an achievable budget and savings strategy for 2014-2015, but this will be a very challenging year.”
- Infrastructure = $41.7 million including:
- Parkridge Centre Remediation $12.8M
- RUH Energy Performance Contract $10M
- Nurse Call Systems $2M
- Parkade Repairs $5M
- SCH Structural Remediation $2M
- RUH Electrical $1.6M
- Rural Infrastructure (fire sprinklers, boiler replacement, electrical generators, HVAC, etc) $6M
- Information technology and eHealth = $10.4 million (including clinical system upgrades)
- Equipment and renovations = $6.8 million (including $3.8M investment in LTC equipment)