Alta. Health Services posts billion-dollar-plus deficit
Updated: Thu Jul. 02 2009 13:01:11
ctvedmonton.ca
The new Alberta Health Services superboard posted a deficit of $1.1 billion in the coming fiscal year.
The number was released just after 1 p.m. at a news conference at the Alberta Children's Hospital in Calgary. The board expects to spend $10.9 billion in the coming fiscal year, with revenues of $9.8 billion.
The board pointed out that Alberta spends $30 million a day on health.
"Alberta spends far more far more per head of population, far more and we don't get better life expectancy," said Alberta Health Services CEO Stephen Duckett.
AHS said if necessary, it will access its borrowing capacity to fund
the gap between its revenue and expenses in the coming year. Prior to
borrowing though, Duckett will bring forward a debt reduction plan.
"It's premature to speculate on the specific nature of what types of changes need to occur, however, over the next few months I will be announcing a number of initiatives that will assist us in working toward meeting out financial targets," Duckett stated.
Health Minister Ron Liepert spoke to the media Tuesday at the Alberta Legislature to address the news of the budget shortfall. When asked about what the news means to patients in Alberta, Liepert said, "I would suggest it means nothing." He said the delivery model will remain the same.
Liepert also said the province has made the commitment to work towards better patient care and better access to health care.
The minister stated that he's confident within a year or two, the province will see a more efficient health-care delivery system.
Duckett also dismissed the notion that rural health care will suffer.
The front-line of health care
With 80 per cent of the province's health budget going to salaries, Alberta Health Services believes the high cost of collective agreements and inflation are to blame for the budget shortfall.
"I don't think it's any secret that we have some of the highest salaries in this province in the medical community... there's a whole bunch of factors that are at play, but we have to get those costs under control," said Liepert.
The United Nurses of Alberta are outraged that health officials would call the workers the offender for the overspending.
"I think that they're trying to find a scapegoat for their own mismanagement of the health system," said Bev Dick with the UNA.
The nurses deal is up for discussion early next year.
"We believe that's when they're going to want to come and strip mine things out of our collective agreement absolutely," stated Dick.
David Eggen with Friends of Medicare said the concern could turn to staff recruitment and retention, with the question being raised, will our province be as attractive to health care providers as it once was?
"When we talk about a billion dollars, that's eight per cent of the total health care budget ...most of that's health care professionals and there's a shortage," said Eggen. "Hey, big news flash there's a shortage of nurses, doctors and health care professionals all across the western world. The young ones especially, they'll leave."
Health unions have criticized the province for the past few weeks now that a hiring freeze on nurses has taken shape. But AHS has fired back by stating that at least 150 are being hired over the next three weeks.
With files from Kevin Armstrong and Erin Isfeld
Comments are now closed for this story
Mikie Now if they didn't give themselves those multi-million bonus' .. they wouldn't have been in such debt..
Brent in Calgary Thanks for nothing, Ed. First you destroy the economy with the NDP NEP, and second you destroy the health care system with the inept super board. I think its time you jumped over board.
Zoe I am convinced that the fools are running the asylum. How nice of them to blame it on the staff who are making "far" too much money even though a lot of us are working ourselves to death to keep the system going while they get a 30% increase + travel pay not to mention pensions and benefits etc. but apparently they deserve it and apparently we don't..how nice for them..
Angel in Cowtown. Alberta Health Services board chairman Ken Hughes blames existing labour agreements and inflation for the budget shortfall << Good luck if you get sick! and if you need an overnight stay at a hospital my suggestion is go to Canadian Tire and buy an air mattress..because there wont be any beds available in Alberta...puts a new meaning to the BYOB concept...bring your own bed!
HEALTH IN CRISIS DOWN WITH ED!!! DOWN WITH ED!!!! I can hear the shouting already.
we wouldn't be in this mess if they had just kept the damn premiums!!!! J Sakowich is right, I'd pay the premiums rather than lose services.
RALPH!!!!! WE NEED YOU BACK!!!!!
Doug S You're right that it means nothing, Liepert. Your gov't has made sure patients are secondary in your health care model, so that won't change. You've been cutting beds and services for years, and you'll continue to do so.
Perhaps if you clowns weren't so intent on combining infrastructure, the costs wouldn't be so high. "Existing labour agreements and inflation"? Hah! How about the costs of trying to make 9 separate and distinct systems - with 9 separate networks, email and telephone systems - all look pretty under the AHS banner? That doesn't come cheap.
And one last tip for you, Mr. Liepert: when you're addressing the media, try looking at the person(s) you're talking to for a change.
Claudia I am actually shocked that the Alberta Government is thinking about going down the path of cutting services again. Our health care system has not recovered since the last time they had this "brilliant" idea. The reality is, people keep getting sick and last time I checked..sick people were cared for by nurses. Leipert gets paid a hefty wage to do his job (poorly), why is it so unrealistic for nurses to get paid for doing their job? Maybe he should actually step foot in a hospital. He might be shocked to see that people actually do their jobs there.
Cynthia Was there any mention of how the whopping bonus Dr Duckett and "friends" will be paid if they come in on budget or the EXTRA bonus Dr Duckett gets if he comes in UNDER budget????? oh and what about that bonus and raise business they gave themselves for the great job they are GOING to do........hmmmmmmmm sure it's all about an an improved system of health care delivery, sure it is.......Enraged RN in Calgary
Harry Absolutely unacceptable. Where is the accountability. Whose idea was the super board anyway? Eliminate premiums then reduce services while giving raises most of the population could only dream about. Then the unbelievable payouts to the previous boards. Ed pay attention and get this right, your opportunities may be very limited. When is the nest leadership review?
If you cut my pay I'm leaving I have been in the same field for 30 years. I am a 30-year professional. I have a university degree and a college diploma. My take-home pay is a little over $25.00 an hour. Do you think that's too much to pay for a 30-year professional? If you cut my pay, I'm leaving the province. You can count on it. I can barely afford to live here now.
Al I find it astounding that they would even post a deficit knowing how the government works. It sounds more like a political move to say they will operate with a deficit when there isn't one to warrant maneuvers to cut cost to justify their other over spending so that when they do come in line after cuts that they look good to the tax payers. Smoke and mirrors.
Maureen The formula for health care spending in Alberta is very, very simple. Less funding allocation to the higher levels of the organizational charts, and more funding and support to the health care providers who are actually doing the work of caring for sick and dying Albertans.
J. Sakowich Why did they do away with premiums? I would sooner pay premiums than lose services.
Tim We're quick to point the finger at Duckett and the superboard, but what they are saying is true.
1) We pay more for our health and get nothing better than anyone else. 2) collective agreements are crippling our health care system.
If anything, Ed Stelmach should be congratulated for taking on the unions and ordering a review of health care in Alberta. He should be encouraged to go further, not jump ship. I work in education, and the culture of union-backed nepotism and waste is incredible - teachers are picked for their jobs not on the basis of ability, but on length of service or who they know. People are sent from one school to the next without regard to the needs of children, but in response to the almighty collective agreement. Kids are being bussed halfway across the city at great expense, simply because the boards couldn't figure out that the new communities would need schools - they cry poverty, but almost daily new management positions away from the front line are created, taking teachers out of the classroom and sticking them in offices.
I hope that the axe is swung good and hard at the culture of waste in health care in this province, and then it's sharpened up and swung at the school boards. As a teacher I'm ashamed at the waste in the board, as a taxpayer I'm angry at the waste, and as a parent I'm outraged that a stupid collective agreement is given higher priority than the education of children in our school system.
Jean Why doesn't anyone listen to us! Quit paying such enormous salaries & compensation packages! These people should learn to live on what "we live on", which in my case is under $100k/yr and I am surviving!!
