In Ontario’s spring budget hospitals were asked to reduce executive costs by 10 per cent.
Now the province is saying there will be no penalty for hospitals that fail to do so.
“Hospital execs are supposed to reduce the costs of their office, but there won’t be financial penalty for those who fail,” said Andrew Chomensky, a spokesperson for Finance Minister Dwight Duncan.
OHA Presdient Tom Closson told the media that hospitals may have difficulty recruiting “top clinical talent” if Ontario is no longer competitive. Closson does not make the same argument about actual clinical staff. In the past year the OHA has been upset by modest increases awarded by arbitrators in the hospital sector.
Chomensky said the reductions in cost aren’t necessarily to the high executive salaries, suggesting hospitals may want to cut clerical staff instead to save the 10 per cent.
What started out as a response to high executive salaries appears to be quickly morphing into attacks on the lesser-paid clerical staff.