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Government changes hospital funding

The provincial government changed the shared-cost funding ratio for health care facilities, decreasing the amount local communities have to raise as part of the facility's total cost from 35 per cent down to 20 per cent.



The provincial government changed the shared-cost funding ratio for health care facilities, decreasing the amount local communities have to raise as part of the facility's total cost from 35 per cent down to 20 per cent.

The shift in the funding formula came along with an announcement of $133 million in additional funding to health care, which includes passing on the new funding ratio to the 13 long-term care facilities already approved. This includes the three facilities in the Sun Country Health Region: Radville, Kipling and Redvers.

"We're thrilled. We've been very fortunate that we've had the support of the surrounding towns and communities - but that support comes at a great cost to them. This new percentage is huge for all the communities around," said Jacquie Becker, fundraising coordinator for the Radville and District Health Centre Foundation. The Radville Marian Health Centre is an affiliated facility with the Sun Country Health Region.

She noted they are in the final stages of planning, and had committed to sending out tenders this year already, with the goal to finance whatever amount of funding they were short to pay for the facility. With the new funding split at 80-20, this will save the Radville Foundation around $3 million.

This amount of extra support from the government "is really going to take the pressure off," said Becker. "I'm sure the RMs and towns must be ecstatic to hear this news."

The residents of Radville and area "really want this to be built. We have two fabulous doctors and we get a lot of support," she said. "The government has said they will help get this built as quickly as possible. The commitments are there."

For the Weyburn and District Hospital Foundation, the shift in funding is a huge step forward, said foundation president Kim Thorson.

"This will certainly make it easier for local governments and their taxpayers, and I expect it will speed up the time where enough local funds can be identified," said Thorson. "The main financial burden falls on local governments, like the city, towns and RMs in the area."

The Weyburn foundation was formed as the fundraising arm to build a new acute-care hospital for Weyburn and area. While no plans have been approved and no dollar amounts are known as yet, the organization has been able to take figures from recently-built hospitals, such as at Humboldt, and extrapolate what it might cost here.

For a facility with a $65-million price tag, for example, the 35-per-cent share for the community would have been $22.75 million, while now with a 20-per-cent cost it would be $13 million, a reduction of $9.75 million that the local community would have to raise.

As this might shorten up the time needed to fundraise, said Thorson, Sun Country might now be able to decide on more firm dates, such as when to tender and when to begin construction.

"We're not the builders of the hospital; that is between Sun Country and the government to decide," said Thorson, adding this change in the funding formula now makes a new hospital for Weyburn much closer in reality, and noted the health region is also very positive about this change.

"The region is very pleased, and the communities are as well," stated Marga Cugnet, interim CEO of the Sun Country Health Region. "I had the opportunity to talk to a couple of the communities who have projects ongoing and that is going to make a huge difference to go to the new funding model and the communities only having to raise 20 per cent now."

"It's almost a certainty we can raise that money locally, with the government changing the requirements," said Thorson, noting local groups and organizations have been very good about donating funds, including more proceeds from the Soup's On fundraiser, and the Rotary Club, which indicated they will soon have another donation cheque for the foundation.

For Mayor Debra Button, one positive impact this will have for the city is that the proposed hospital levy that council was planning to introduce this year, now may be delayed by a year.

"We still don't have any idea what the costs of a new hospital will be," said the mayor, adding while a 15-per-cent reduction is good for the city, they would prefer not to have to pay anything for a new hospital. She referred to discussions at the recent SUMA convention, where many delegates told the provincial cabinet that their preference is for the province to completely shoulder the costs of building health care facilities.

"Communities asked for a new funding formula, and we are delivering it. An 80-20 split lowers financial barriers to the revitalization of health facilities in towns and cities across Saskatchewan," said Health minister Don McMorris of the funding change.

"We'd still like to see it at zero," said the mayor. "There was a time when it was pulled off a municipality's shoulders. This is a good start - but we're not done yet."

As far as when to put a levy on to help for the city's share of the new hospital, Mayor Button said, "We've had discussions on when to start and what to do. We want to be sure the numbers are right. The mayor of Humboldt advised us to check that."

The council has also had discussions with MLA Dustin Duncan, and with the Chamber of Commerce on the levy, and with this change they will take some more time before implementing it.

"If I had to guess, there will be nothing done this year with putting on a levy," said Mayor Button.

Broken down, the $133 million in funding includes $49.3 million for the 13 long-term care facilities (including Radville's) set to go this year; $42.7 million will be divided between repairs ($18.7 million) for infrastructure needs in their region, and $24 million for equipment; $8 million for the new electronic health records information system; and $12.6 million for repairs and equipment for facilities in Saskatoon, Moose Jaw and Melfort.

In relation to the recruitment and retention of physicians, $10.5 million is to support activities to attract new doctors and to retain existing doctors in Saskatchewan, and $10 million is reimbursement to doctors for an increased number of physician services.