The Sunrise Health Region continues to operate in the red.
The Region’s 2014-15 Operating Expenses are greater than Operating Revenues by $1,007,256 (0.57 per cent) up to and including January 31, 2015, detailed a report circulated at the SHR’s Board meeting last Wednesday.
Total operating revenue is over budget by $3,260,144, presenting a 2.1 per cent variance from the year-to-date (YTD) budget.
“The variance is a result of additional special payments for collective bargaining and other recoveries being higher than budgeted but they are close to the prior year levels,” stated the report.
The deficit runs deepest in inpatient and resident services.
Total inpatient and resident services are over budget by $3,834,062. This represents a 5.5 per cent variance to YTD budget.
“Some of the above variance is due to collective bargaining increases that received funding. The majority is due to overages in benefit salaries and overtime,” detailed the report.
Physician compensation is over budget by $928,217. This represents a 10.3 increase to YTD budget. We are over budget in the expenses for anaesthesiologist guarantee top up ($151K) and alternated payments ($628K) which accounts for the majority of this variance. Additional funding is being received for some of these expenses, continued the report.
The Board also heard from Lorelei Stusek, VP of Corporate Services that the Region will see more money from the province in the year ahead.
Sunrise will see a 5.1 per cent increase in funding, or an additional $9.4 million, announced in the recent provincial budget, she said.
However, the new dollars will not address the deficit situation, as the added dollars “is earmarked for programs,” said Stusek. The money is simply covering existing program needs, or collective agreement cost hikes.
With that in mind Stusek said the Region “is going to have a challenge next year.”
