2012 Ontario Budget: Highlights for FHTs

The central goal of the 2012 Ontario Budget is captured in the title of its news release: “A Plan to Balance the Budget, Create Jobs, Protect Education and Health Care.”

The key sections for FHTs are “Transforming Health Care” and “A LONG-TERM PLAN FOR PUBLIC-SECTOR COMPENSATION”.  FHTs may also be affected by the push for more “Collaborative Purchasing in the Broader Public Sector” and the move for full cost recovery in a number of user fees such as the Hazardous Waste Fee (see “Non-Tax Revenues”). Transforming Health Care

This section of the budget reiterates the key themes of Ontario’s Action Plan for Health Care.   The budget states specific plans to:
  • Cap health care expenditure growth to 2% per year.
  • Maintain total physician compensation at current levels through the next Physician Services Agreement with the Ontario Medical Association.
  • Hold growth in hospitals’ overall base operating funding to zero per cent in 2012–13, while continuing to increase investments in the community care sector by an average of four per cent annually.
  • Restrict seniors with net incomes over $100,000 from access to free drugs.
  • Phase in a patient-centred funding model over three years such that hospitals, long-term care homes and Community Care Access Centres will be funded “based on the types and volume of services and treatments they deliver, at a price that reflects the best practice and complexity of patients and procedures, while encouraging efficiency without compromising service and access”. (There is no reference to primary care regarding this point.)
  • “Keep Ontario Healthy”, with a panel set up to develop a Childhood Obesity Strategy, increased fines for those who sell tobacco to children, continued expansion of comprehensive cancer screening programs, and individual access to an online Personalized Cancer Risk Profile that will use medical and family history to measure cancer risk and then link those at higher risk to prevention supports, screening or genetic testing.

The 2012 Budget reiterates the Action Plan commitments to expand same-day and next-day appointments and after-hours primary care, to integrate planning for primary care into LHINs.  It also references plans to introduce reforms to enable LHINs to promote a seamless coordination of treatment and continuing focus on reducing Alternative Level of Care (ALC). It once again mentions accelerating “the evidence-based approach to care by building on the mandate of Health Quality Ontario (HQO) to provide recommendations to direct funding to where evidence shows the greatest value, without compromising access to services deemed medically necessary.”  It gives no additional details on these commitments. Public-Sector Compensation The budget states government’s intention to hold the line on compensation for physicians (noted above) and public sector unions (while respecting collective bargaining), and extending the pay freeze for executives at hospitals, universities, colleges, school boards and agencies for another two years.  It states, “The government expects its partners to consider not only current and future compensation, but also those aspects of collective agreements that enhance productivity and facilitate public sector transformation.”  It also states, “Where agreements cannot be negotiated that are consistent with the plan to balance the budget and protect priority services, the government is prepared to propose the necessary administrative and legislative measures.” For FHTs that are able to offer the HOOPP or any other public sector pension plan, note that pension changes will be introduced to reduce employer obligations to fund pension deficits or otherwise add to employer and taxpayer expense, beyond what has already been agreed.

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