From the Norfolk General Hospital Board of Directors November 7, 2012
Like all other Ontario hospitals, NGH must balance its budget and is facing the challenge of increasing costs with no corresponding increase in revenue. Effectively managing our resources is a key priority, and we are doing all we can to meet Ministryrequirements. At the same time, the hospital will not compromise patient safety or the high quality of care that our patients count on.
As of August 31, 2012, fiscal year to date, Norfolk General Hospital has a deficit of $600,000. This figure remains slightly greater than a predicted deficit forecast of $550,000. While the hospital continues to strive to meet financial targets, it is probable that we will have a projected year end deficit of $1.3 million. This will not deter from our overall goal of achieving a balanced budget for 2013-2014. Through implementation of the budget plan thus far, NGH has experienced several areas of success and has been able to balance the budget in September.
The implementation of the budget plan been successful in the following initiatives:
• Revenues from hospital parking and other sources have increased
• Administrative costs have been reduced notably in the areas of Information Technology, Finance and Health Records
• Reduced management costs, through retirement, early exit programs and voluntary reduced work schedules
• Clinical staff efficiencies in our Operating room, Intensive Care Unit and Complex Care without having to do staff
• Reduction in supply costs - energy, food products, maintenance supplies
• Purchase of a new lab analyzer which will dramatically reduce future lab agent expenses ($80,000 annually)
It is important to note that Norfolk General Hospital is a highly efficient hospital. In comparison to other similar sized health care facilities our administrative costs (7.3%) are far lower than the provincial benchmark (11.7%).
As one of the most efficient hospitals in the province, it is challenging to find room for greater efficiencies, but through our plan we continue to achieve cost savings measures. For example, our in-patients costs per day have reduced from $ 411.00 in (2011-12) to $385.00 (current fiscal position).
While Norfolk General Hospital has achieved success through these early initiatives, there are several other cost saving ventures that have yet to come to fruition and others that continue to be explored. The hospital will continue to consider all efficiencies and cost saving measures, while not compromising our commitment to patient care.
“It is absolutely imperative that we stay on track with our budget for this year, or we will be facing even tougher decisions ahead. I’d like to thank everyone on the NGH staff for their ongoing dedication in these challenging times,” Kelly Isfan, president and CEO, Norfolk General Hospital.
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President & CEO NGH