Muskoka hospital draws line in sand – no more cuts

Muskoka Algonquin Health Care says it cannot cut anymore. Short $6 million to balance its budget, the hospital board is refusing to sign an accountability agreement with its Local Health Integration Network (LHIN) that would require it to balance its budget.

The Muskoka-area hospital has gone back to the LHIN for more funding, and the LHIN is in turn is looking to the Ministry of Health for help. The hospital board admits there is no alternate plan.

Residents are fearful that any further cuts would mean one of the two remaining sites of the hospital would close. At present MAHC operates hospitals in Bracebridge and Huntsville. A third site, The Burk’s Falls & District Health Centre was closed in 2009 as part of $3.1 million in MAHC budget cuts that also included bed closures and staff cuts.

The hospital is projecting a $4.2 million deficit for this fiscal year, which is expected to grow to $6 million for 2011/12. MAHC has a working capital deficit of about $11.2 million.

MAHC Board Chair Sven Miglin told the Huntsville Forester that “this board firmly believes that Muskoka requires two acute care hospitals.”

The Chair of the North Simcoe Muskoka LHIN said MAHC was the only hospital in the province not to sign its accountability agreement.

Councillors elected to the District Council have been critical that the LHIN has not been open about the budget process for MAHC.

“The community is so frustrated,” Councillor Fran Coleman told the local newspaper, “they want answers, they want to know: are the hospitals closing?”

How could government not know they were being lobbied by hospitals?

In the 1942 movie Casablanca, Captain Renault, in need of a quick reason to close Rick’s café to impress his German guests, indignantly says “I’m shocked, shocked to find that gambling is going on in here!” At that moment the croupier presents Renault with his winnings, which he quickly shoves into his pocket.

The government’s reaction to hospital lobbying is a little like that.

Timed to coincide with the auditor’s report on the use of health care consultants, the new Public Sector Accountability Act proposes new rules to clean up the procurement process, improve transparency and restrict the use of paid lobbyists by public entities, such as hospitals.

In the auditor’s report we learn that of 16 hospitals examined, half had paid lobbyists to press the government for more funding.

While the government fulminates about hospitals using public money for lobbying activities, the question is, given they were the target of the lobbying, how could they not have known before now?

Or was the health minister’s response a little like Captain Renault’s” “I’m shocked, shocked to find that professional lobbyists have been talking to me!”

If 50 per cent of hospitals are using lobbyists to call for more funding, it also raises an additional question. What does that say about the faith Ontario hospitals are placing in their own leadership at the Ontario Hospital Association?

Tom Closson, President and CEO of the OHA spoke October 6 to the Economic Club of Canada. He said: “It is clear that, without any significant tax increases, any plan to re-balance the provincial budget must involve a much lower rate of expenditure growth for health care.” This is despite the fact that core funding for his membership has recently lagged behind the rate of inflation. Closson went on to speak about how hospitals need to work more efficiently, claiming there were the equivalent of 16 hospitals full of patients that could be effectively served elsewhere.

Meanwhile, it’s now clear that at least half those hospitals were banging on the door at Queen’s Park looking for more money. The second week of November the OHA gathers for its annual HealthAchieve conference. This year it may be far more interesting to listen in to chatter in the corridors than what takes place on the podium.

Ontario deflects auditor’s criticism on use of consultants with new Act

The Ontario government unveiled the Broader Public Sector Accountability Act on the same day the Ontario auditor released his report into the use of consultants by Ontario’s Ministry of Health, the Local Health Integration Networks (LHINs) and Ontario’s public hospitals.

The Act addresses many of the criticisms leveled by the auditor in his October 20th report and once again promises to bring hospitals under Freedom of Information legislation.

Ontario auditor Jim McCarter said his office found too many examples where consultants were engaged on a sole-source basis, where significant increases in the initial fee estimate and follow-up work were repeatedly awarded, and where there was inadequate oversight to ensure consultants delivered on time and on budget.

One of the auditor’s recommendations is that the Ministry actually follow existing procurement requirements.

McCarter also said that billings for fees and expenses were not properly monitored and supported, giving the example of one hospital which paid a lobbyist $170,000 in expenses between 2007 and 2009. When the hospital asked for receipts to support the expenses, they were told that supplying the receipts would entail a $3,000 service charge.

Of 16 hospitals looked at by the auditor, half of them had paid consultants to lobby for more funding, a practice the auditor called a “questionable use of funds provided to hospitals for clinical and administrative activities.”

The new act would bring in new standards for hospitals, Community Care Access Centres and LHINs – in fact any broader public sector organization that receives more than $10 million in government funding would be included. The new rules will apply to school boards, colleges, universities, hydro entities, Children’s Aid Societies and more.

Other requirements under the Act include

  • A requirement for hospitals and LHINs to post expenses of senior executives on-line
  • Require hospitals and LHINs to report annually on their use of consultants
  • Ban the use of public funds to hire external lobbyists (own-source funding for lobbying is still permitted)

Video: OPSEU Street Theatre at Ontario Liberal AGM

Video of last Friday’s OPSEU Street Theatre outside the Ontario Liberal AGM in Toronto.  When fully implemented, the annual cost of corporate tax cuts will be greater than all new funding to health service providers this year.

Does Windsor Hospital CEO know what’s going on?

Submitted as a letter to the editor, Windsor Star.

David Musyj, President and CEO of the Windsor Regional Hospital, asks last week “(don’t unions) know what’s going on in the world?” One could very well ask the same of him.

Musyj should have known what the outcome of last week’s arbitration decision would be. After all, the OPSEU arbitration was not the first to be decided upon since the government introduced its wage restraint legislation. It was evident all along that the arbitrators would use last November’s OPSEU hospital professionals’ arbitrated central agreement as its guide.

If he had read the legislation, he would have learned it didn’t legally cover these workers nor the time frame the collective agreement covered.

If he was so short of money, he could have arrived at the same destination without the considerable costs and efforts surrounding the arbitration process by agreeing to these inevitable terms beforehand. Other hospitals did.

Musyj might have also looked to the more than 150 other public hospitals across the province which are receiving similar funding levels and are mostly managing to balance their budgets despite such rulings.

Yes, he signed an accountability agreement with the Local Health Integration Network legally requiring him to balance his budget, but had he read the fine print, there is an exemption in that language to allow for arbitrated decisions.

Finally, while he was crying on behalf of the province that the cupboard was bare, he appears to have no comment when it comes to the $2.4 billion per year in corporate tax cuts the government is phasing in. Seems the cupboard is only bare for some, not others.

Musyj could have had an agreement at the bargaining table. Instead he rolled the dice on long odds and predictably lost. Now we’re supposed to feel bad for him?

Warren (Smokey) Thomas

President, OPSEU

Matthews signals change in commitment to transparency for hospitals

At last year’s Ontario Hospital Association “HealthAchieve” conference Health Minister Deb Matthews suggested she would bring hospitals under Freedom of Information legislation. She applauded OHA CEO Tom Closson’s call for greater transparency.

In response to rebuilding trust after the e-Health scandal, she said:

“One part of restoring that trust is being transparent about how we’re spending and what we’re doing. It’s about showing Ontarians what we’re achieving and being honest about our shortcomings.

I’d been on the job three weeks when Tom Closson wrote me suggesting that Freedom of Information laws be extended to cover hospitals.

He pointed out that recent events should be viewed as a wake-up call for leaders of all public-sector organizations, and hospitals should not be exempt from that.

He showed himself, the OHA and this province’s hospitals, to be transparent and accountable to taxpayers and to patients, and I salute you for that.

With that kind of leadership, we’ll be able to restore the trust and regain the confidence of Ontarians.”

Flash forward to this week. The NDP charged that at least 14 hospitals have hired Queen’s Park lobbyists, but only had figures on how much was spent by a handful of them. NDP leader Andrea Horwath called upon Matthews to put hospitals under Freedom of Information Legislation.

Matthews replied that the Liberals are “seriously considering” it.

Seriously considering it? It sure sounded like she more than giving it serious consideration a year ago.

Similarly, on the front page of the Toronto Star Premier Dalton McGuinty said the deplorable conditions identified in the newspaper’s probe into retirement homes was reason for him to stay on and do better. How inspirational. On page 17 of the same newspaper, when the NDP and Tories called for an emergency investigation into retirement homes, the government turned them down, suggesting last summer’s legislation would be enough to solve the problem.

Seems the present government has a bit of a credibility problem when it comes to their commitment to resolving health care issues.

Health Minister excludes lab technologists from list of “front line workers”

Health Ministers seldom know much about medical labs. One former health minister told us bluntly that he knew nothing about labs. This lack of knowledge doesn’t appear to prevent them from making bad decisions.

On Tuesday NDP MPP Gilles Bisson asked Health Minister Deb Matthews about the potential closure of provincial labs around the province, including Timmins. Bisson is likely referring to public health labs, given Timmins already has a private lab, Lifelabs, which does community-based lab testing.

Health Minister Deb Matthews replied that there was a review of labs conducted in 2007 by an independent consulting firm to assess the service delivery model when it comes to labs. The report she was likely referring to was the RPO Report, which evaluated a pilot project involving 12 small hospitals who were doing community-based lab testing. The 12 did not include Timmins.

Under the Harris government, lab work was cleaved in two. Hospitals continued to do inpatient lab testing; lab tests ordered outside of a hospital would be done at one of several private labs, such as Lifelabs and Gamma Dynacare. The pilot was intended to use small rural hospitals to do this community lab work, often working with a private sector partner.

The 2008 RPO report showed tremendous advantage in having community lab work done by these hospitals, but then dutifully recommended against it in one of the weakest rationalizations ever to emerge from a health care consulting firm. This, however, has absolutely nothing to do with Timmins and the public health labs.

In her reply to Bisson, the Minister also implied that lab technologists were somehow not front line health care workers. She said: “The people I talk to, when they think of health care, they think of our front-line workers, they think of our doctors, our nurses, our personal support workers; they think of people who actually provide care.”

Bisson correctly replied that lab technologists were front line workers. They are essential partners in the diagnosis process. More than 80 per cent of all diagnosis relies upon a lab test.

The technologists who work at the public health labs are concerned about who may be next to close following the literal demolishing of the Windsor public health lab to make room for a highway. OPSEU fears that the Ontario Agency for Health Protection and Promotion (OAHPP) is looking to reduce the number of labs it operates around the province. No decisions have yet been made public.

The OAHPP Public Health Laboratories (PHL) provide clinical and environmental laboratory testing, related expert advice and research in support of the prevention and control of infectious diseases and the protection and promotion of the public’s health in Ontario. This is a very different function from the community and hospital-based labs.

The distance between Timmins and the next public health lab would be substantial, creating delays in getting timely lab results. Given the recent history of outbreaks in Ontario, it’s likely the citizens of the north will not be very pleased should this lab close.

The OAHPP claims rationalization will make them more efficient. We have heard this all before. Rationalizing hospitals was supposed to make them more efficient. Instead it increased costs and placed many in significant debt. The private labs were supposed to make community-based testing more efficient, but they cost as much as 50 per cent more per test than when they had been conducted in the hospital.

If the Minister would like to be among the first to really learn something about how labs work, we’d be happy to extend an invitation.

For the record, Bisson asked the Minister to say she would not close the lab in Timmins . She did not.

In Brief: North Bay family members speak out; 70 per cent of women feel rushed through hospital

According to the Sudbury Star, North Bay families are scared, angry and frustrated about the transfer of 31 specialized mental health beds to Sudbury. The newspaper highlighted the story of Bob Kouris’ uncle, who is presently occupying one of the beds scheduled to transfer nearly 130 km west. This week patients will learn whether they stay or go. Kouris called North East Mental Health about his uncle. “I was also asked if I would consider having my relative move to Sudbury,” he told the newspaper. Kouris may not have a choice in the matter given shortages of alternate beds. The Concerned Citizens committee wrote to MPP Monique Smith asking a number of questions, including whether the Sudbury Kirkwood would be a permanent location for these patients. Smith instead deferred that question to the North East LHIN. Meanwhile a postcard campaign over the North Bay beds continues. … Quebec has backed down from a plan to charge $25 for a visit to the doctor. Facing widespread opposition to user fees, the Charest government admitted that “the culture here in Quebec is not ready for it.” … Toronto’s Women’s College Hospital surveyed 584 women about what they considered an ideal hospital. 96 per cent of women said they wanted dignity and respect from hospital staff – about a third said they don’t get it. 70 per cent said they feel rushed through the hospital system, while 65 per cent said they felt like a number instead of a person. The experience of the women may reflect the government’s push to move patients in and out of hospitals a lot faster.

Qualified individuals could claim up to $100 in class settlement

If you worked at an eligible hospital or health care provider in 1997 and paid LTD premiums, you may be eligible to receive up to $100 as part of a demutualization settlement – however you must act by Monday, October 18th.

Demutualization is a process by which a customer-owned mutual organization or co-operative changes legal form to a joint stock company. As part of that process, the customers involved are eligible for a payout as they relinquish that ownership.

The Ontario Hospital Association (OHA) is holding $22.5 million in demutualization proceeds in trust related to LTD premiums paid into the OHA plan before December 29, 1997. OPSEU participated with several other health care unions to obtain this settlement.

For those that continue to work for the same employer, you will receive your benefit in the form of a premium holiday on your LTD coverage. You do not need to do anything.

For those who may have changed employers, retired, presently work for an employer that pays 100 per cent of LTD premiums, or who may have been affected by amalgamation into a larger hospital system, you may be eligible to receive a cheque for as much as $100. You may also claim on behalf of a deceased member of the plan.

A list of eligible workplaces is available on-line. See:
http://www.opseu.org/benefit/OHA2010/Schedule%20A%20-%20Participating%20Organizations%20(Reproduced)%20(C0131292).pdf

If you are unsure, it is recommended that you still apply by the October 18 deadline.

For more information, go to:
http://www.opseu.org/benefit/oha-ltd-deadline-2010.htm

Video: New hospital funding model leads to greater privatization — Armstrong

September 28 Carleton University professor Hugh Armstrong presented his analysis on patient-based funding for hospitals as part of the Ontario Health Coalition summit in Toronto. A radical shift away from the global funding model, patient-based funding more closely resembles the fee-for-service model the province is moving away from for doctors. Armstrong says the new model may lead to greater privatization.

Hugh Armstrong is a Professor in the School of Social Work and in the Institute of Political Economy at Carleton University in Ottawa. He has published articles on privatization in health care, on the re-organization of work, and on state workers. With Pat Armstrong, he has written widely on women and work and on health care. Among their books are Theorizing Women’s Work (1990), The Double Ghetto: Canadian Women and Their Segregated Work (Third Edition, 1994), Wasting Away: The Undermining of Canadian Health Care (Second Edition, 2003), and Universal Health Care: What the United States Can Learn from the Canadian Experience (1998). Among their reports is a paper on health human resources for the Romanow Commission on the Future of Health Care in Canada.