Service Cuts Dominates Middlesex Hospital Alliance’s (MHA) Board

A single topic dominated the agenda for the March meeting of the MHA Board of Directors. Board members were briefed by their Leadership on discussions with the Southwest Local Health Integrated Network (SW LHIN) around how the MHA is best able to meet its legal requirement to balance its operating budget in the years 08/09 and 09/10.

The Board is responsible for two Hospital Corporations: Four Counties Health Services (FCHS) and Strathroy Middlesex General Hospital (SMGH). Each budget is separate and therefore requires its own Hospital Accountability Program Strategy (HAPS) Agreement.

The Board approved a plan to balance FCHS's operating budget by March 31, 2010. The plan includes a number of restructuring initiatives and takes into account changes already implemented in the laboratory and out-patient clinics, which should have a positive impact on the bottom line over the next two operating years. The Board also learned that in order to complete the balanced plan that the Outpatient Physiotherapy services would be dramatically reduced in 2009/10.

In response to queries raised by Board members, Board Chair Yvonne Lambert reported on talks she has had with local MPP Maria Van Bommel, Lambton-Kent-Middlesex. Lambert reported that she continues to meet with the local MPP in order to keep her apprised of potential service impacts to the local community.

Based on discussions today, the Board will sign an agreement with the Southwest LHIN to balance the budget for its FCHS site.

Negotiations around balanced budget requirements for the SMGH site continue with the SW LHIN. The Board of Directors will not be signing an agreement to balance the budget at the SMGH site until negotiations with the SW LHIN are completed.

Board Chair Yvonne Lambert explained the negotiation process with SW LHIN. "These are not negotiations in the strictest sense as it is very clear that the SW LHIN cannot bring any additional resources to the table. This is more about explaining the ramifications of service reductions to the LHIN so that they have a good understanding of the service reductions required to allow the hospital to meet its legal requirement to balance its budget."

The SW LHIN has indicated in communication to the Hospital Board that it has extended the deadline for response from the MHA hospitals from March 26 to April 14.

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Service Cuts Dominates Middlesex Hospital Alliance’s (MHA) Board