It won’t be easy, but then achieving a balanced budget never is, especially in a growing industry.
The Sun Country Regional Health Authority approved a balanced budget for 2015-16 that will be slightly above $153 million. The motion to approve the budget was passed by the board of directors during their May 27 meeting at Tatagwa View in Weyburn.
Sun Country’s CEO Marga Cugnet said that while there will be a struggle and a balancing act to perform, she was pleased to see where they could achieve that objective without layoffs of personnel or cutting any existing programs.
During the budget presentation, John Knoch, the vice-president of corporate and finance, noted that to achieve the target, some positions left vacant by retirement or resignation, may not be filled immediately, thus giving the region a little flexibility in managing the financial side of the business that employs nearly 2,400 people, who fill 1,365 full-time equivalent positions in the sprawling health region that covers all of southeast Saskatchewan with 28 health-care facilities.
The operating budget has been reduced by about eight per cent for the next fiscal year as the region struggles to meet expectations with no allowances for inflation.
The restraints will be felt on the salary scales as well. No increases in salaries are expected for out-of-scope employees and administration and any negotiated increases with unionized members, it is understood, will be covered by the provincial Health Ministry.
The scaled-back budget includes a $180,000 reduction in inventory costs in the material management department. This has been achieved over the past two years through the Lean initiatives.
It is also hoped to have a reduction in staff sick days and overtime through the attendance management program that will focus on reduced staff injuries and earlier return-to-work plans.
But those modest cuts have to be weighed against increasing demand for medical and surgical supplies, higher laboratory and maintenance costs and higher utility rates in three new and larger long-term care facilities that opened just recently. There will also be increased costs associated with expanded ultrasound services in Estevan and Weyburn plus additions to primary health-care and chronic disease management programs.
The budget includes a very modest $1.3 million in provincially generated funds for capital construction or new/replacement equipment. It was noted during the budget presentation that most of the health care facilities rely heavily on community-based fund-raising efforts to fill the capital construction and equipment costs.
“It’s a tight budget that allows for some balanced growth, consistent with our population growth and the need for updated technology. The region is also pleased to have received funding to start the planning for a new hospital in Weyburn,” said Cugnet, acknowledging the $500,000 earmarked in the provincial budget to assist with the preliminary planning for a new general hospital in that city.
As expected, wages absorb the lion’s share of the proposed 2015-16 budget at just over $104 million while medical services will top $7.2 million.
If all goes according to plan, said Knoch, there could be a slight surplus of less than $1 million at the end of the fiscal year.
The previous year’s budget was set at $146.3 million but actual spending ended up at $153.4 million due to unanticipated provincially-directed expenditures that were subsequently covered by the health ministry as the new projects were rolled out.
During the course of the presentation it was noted that the board of directors is costing the region significantly less, coming in at around $83,000 compared with the previous mark of just over $131,000.
Marilyn Charlton, board chairwoman said, “there wasn’t the need for as much board member training and we had a couple of board resignations. Those positions were not filled and we haven’t pursued any prospective appointees because there will be a new appointment schedule coming out in August. So, we are simply being frugal.”
All regional health board members are appointed by the provincial government through the Ministry of Health.
Knoch shared the budget presentation duties with finance department administrator Vanessa Marcotte.
The proposed budget has been filed with the Ministry of Health with the annual report expected to be available to the public in the latter part of June.
