The Sunrise Health Region is currently running a modest surplus, and expectations are for the region to still have a balance budget by the end of the year.
The Region’s 2015-16 Operating Expenses are less than Operating Revenues by $1,370,177 – 0.15 per cent up to and including August 31.
A report circulated to the Board at its regular monthly meeting Oct. 28, indicated the majority of the surplus is a one-time pay-out.
“We received a one-time $1.2 million WCB rebate due to WCB surplus in operation. We are forecasting an additional $500k of net revenue and an additional $500k of net expenses by the end of this fiscal. Therefore, our year end forecasted variance to budget remains at zero,” stated the report.
The slight margin at this point means the Region is still hoping to hold to its budget plan for the year.
“We always say we will be balanced,” said Sunrise president and CEO Sue Ann Laurent.
But new Board member Glen Leontowich questioned if the WCB rebate was an unexpected one-time pay-out why that would not mean an automatic surplus of that amount?
“There are pend up needs for expenditures,” replied Board Chair Lawrence Chomos, adding that “with the size of the organization” the WCB rebate is not a lot of money. “One million sounds like a lot, but it does little more than take the pressure off.”
In general revenues are running slightly ahead of the budget.
“Total operating revenue is over budget by $192,640. This represents a 0.2 per cent variance to year-to-date (YTD) budget. The variance is a result of Special Payments being held back until conditions are met ($424k), ambulance fees are lower ($73k) and reciprocal billing is lower ($468k) due to volume,” stated the report.
On the expense side of the ledger wages remain the issue.
“Total impatient and resident services are over budget by $759,568. This represents a 2.1 per cent variance to YTD budget. Majority of this variance is within compensation due to higher than expected sick leave utilization and overtime,” stated the report.
Chomos said the pressures around wages are not unique to Sunrise.
“That is an issue in our health region and other health regions,” he said.
In other expenditure areas the numbers are running better.
“Physician compensation is under budget by $243,126. This represents a 4.5 per cent variance to YTD budget. We are under budget in alternate payment to GP’s by $168k,” stated the report.
“Our ambulatory care services are under budget by $102,127. This represents a 3.5 per cent variance to YTD budget. Emergency is under budget by $64k and Hemodialysis is under budget by $56k.
“Our diagnostic and therapeutic services are under budget by $351,438. This represents a 3.9 per cent variance to YTD budget. The majority of the variance is in Medical Imaging at $184k and seven full time equivalents (FTE) under budget due to vacancies. Rehabilitation is also under budget by $256k and six FTE’s.”
