Health region budget approved

The Board of Directors of Sunrise Health Region passed a balanced 2016-17 Operating Budget at a meeting held last Wednesday in the city.

The budget is based on total revenues of $225,224,837, 90 per cent of that coming directly from Saskatchewan Health, and an additional three per cent coming from alternate government sources at the provincial and federal levels, explained Lorelei Stusek, VP of Corporate Services at the meeting.

Most of the remainder of revenue comes from Health Region clients, predominantly residents in long term care.

On the expenditures side of the ledger the budget shows a total of $223,162,488.

Seventy-seven per cent of expenditures go to compensation, wages and benefits for staff, detailed Stusek.

An additional six per cent of expenses is budgeted for medical renumeration.

In terms of process, Stusek said the Region began creating the budget by focusing on serveral guidelines, including the parameters set down by the provincial ministry, and the Region’s own parametres, reviewing Regional & Ministry Strategic Priorities for 2016-17, and taking a look at  business case submissions from SHR managers.

From that point it was a case of getting into the actual numbers.

The budget team identified required changes, available funding to address 2016-17 emerging pressures and service requirements, and looked at risks to the budget numbers, said Stusek. She added, there was extensive involvement of Executive Leadership Team, Directors and Managers accountable for their portfolios.

And finally a draft focusing on priority areas was presented to the SHR board at an in-camera meeting June 29.

The numbers show an operating budget surplus of $2,062,349, the exact amount required to be set aside for mortgage and energy payments, resulting in a net surplus of zero, detailed Stusek.

For comparative purposes, the presentation of the budget included the 2015-16 year-end financials.

The 2015-16 budget rolled-out completed in June 2015 with a Board approved balanced budget, said Stusek.

Focus was on the breakthrough strategies, sick time and wage driven premiums and straight time scheduling optimization, she noted.

The 2015-16 budget ended the year with a surplus of $2,093,602 of which $2,062,407 was for allocation of required transfers to the Capital Fund for mortgages, energy loan, and reserve funds leaving Sunrise with an increase in our general operating fund of $31,195.

The Board then turned its attention to passing the SHR’s Capital Budget for 2016-17.

The Board approved capital expenditures of $3,290,859 contingent on funding to be received from the sources listed in the accompanying schedules.

The capital dollars come from a number of sources, offered Stusek, including the government, including Capital Equipment – 2016-17 -- $575,000, Capital Equipment – reallocation -- $16,802, Block Funding -- 2016-17 – Life Safety/Emergency & Infrastructure -- $1,100,000, and Block Funding – reallocation -- Life Safety/Emergency & Infrastructure -- $190,310.

Other capital funding sources include; CMHC Replacement Reserves -- $260,177, Health Foundation -- $669,770, and affiliate Foundation & Donations -- $478,800.

Both the operating and capital budgets were unanimously passed by the local Board, and will now be sent to the Ministry for final provincial approvals.