Beware of bankers who profess to be health experts

Beware of bankers who profess to be health care experts. Don Drummond and Derek Burleton of TD Economics released a report yesterday blaming health care for the present fiscal deficit and recommending a variety of ways of bringing down costs, including taking “rich” seniors off the Ontario Drug Benefit Plan.

Have they no shame? Do they just assume our collective memories are so short that we have forgotten the role of the international financial services sector in bringing down the world economy in 2008? Now they are rewriting history to suggest it was health care that sent our deficits soaring.

Returning to record bank profits – which will be taxed less thanks to Dwight Duncan’s recent budget – the TD Economics executives feel it is their place to tell us to tighten our belts and do without. In Duncan’s budget new tax cuts cost Ontario $4 billion for 2010/11. The increase in costs for public health care was $2.2 billion. That’s right — increased tax cuts cost more than increased health care spending.

Next year the government plans to reduce increases in health care spending to an arbitrary 3 per cent, but the corporate gravy train will continue with more tax cuts.

Under this scenario, you could freeze health care spending and it would eat up a larger percentage of the provincial budget by virtue of a shrinking capacity by government to raise the money it needs. So, where are the editorials talking about tax cuts being unsustainable?

The Chicken Littles of health care spending Armageddon really don’t like to look at health care spending as a percentage of the overall economy. This is how most international economists analyse health care spending. Health care spending cost 10 per cent of Canada’s gross domestic product (GDP) during the last recession in 1992. Last year health care spending amounted to 11.9 per cent. This is not because of any major growth in health care spending in 2009, but because the economy actually shrunk. The year before health care had cost 10.8 per cent of GDP – that’s less than a one per cent change over close to 20 years. These figures are for all health care, both public and private. About seven cents of every dollar spent on health care is public. In Ontario it’s a little bit less.

Hospitals always appear to be the target of bankers and policy makers. Hospitals have actually been shrinking as a percentage of the public health care pie. There was a time when hospitals accounted for more than 50 per cent of public health care spending. Now it’s below 28 per cent.

The fastest rising costs in health care are for drugs – something the government has just begun to tackle amid the firestorm from Shoppers Drug Mart and other commercial retailers. In Canada we now spend more on drugs than we do physicians.

The bankers acknowledge that much of our present-day expenses are related to the fact that Premier Harris and his counterparts across Canada slashed health care funding throughout the 1990s. And we know that when you do that, you don’t save money, you defer expenses until another day, often at greater cost.

Presumably when you play catch up a funny thing happens – you actually catch up. Nobody is saying health care will cost 8 per cent this year. Hospitals are getting 1.5 per cent in global funding. The OHA said at one point they needed 3 per cent. Yet the bankers say costs will rise at an annual pace of at least 6.5 per cent over the next 20 years. According to whom? Where are their figures coming from?

Dwight Duncan often repeats the mantra that health care will swallow up 70 cents of every program dollar within 12 years. Yet the most recent budget says health care is only 40 cents of the program dollar, but when adjusted for some accounting changes unrelated to health care, that figure jumps to 46 cents. In 2007 it was 47 cents on the program dollar. If you were making a little chart of this, the line would be trending slightly downward, not upward, even accepting the effects of accounting changes.

If we are trending slightly downward over the last three years, how do we suddenly get to 70 cents of every program dollar in a little more than a decade? To do so would mean an increase of 2 cents on the program dollar every year. Even in the most lavish years of spending we never saw that rate of increase. Not once.

The government has never explained how it arrived at that figure, but it was been echoed in bankers reports and in the mainstream media since March. Apparently if they keep on saying it, we’ll all believe that there’s a problem with health care spending and be more likely to accept the unacceptable.

Our single-payer system remains the most efficient model for delivering health care. Regardless of what the cost is, all alternatives are worse. Just look at the U.S.

There is much we can do to improve how we spend our health care dollars. It may be counterintuitive, but if a public plan can buy drugs for less, why would we want to move people out of that plan, as the bankers suggest? Shouldn’t we instead expand the plan? Wouldn’t it make sense for all of us to pay a bit more in taxes to save us substantial out-of -pocket expenses? In a January Vector Poll, 57 per cent of Canadians said they would actually pay more for better health care.

If the bankers recognize fee for service does not work well for doctors, why would they want to move hospitals towards that model?

Nobody calculates the cost of the constant upheaval in the system. It’s been more than a decade since the Health Restructuring Commission issued its report. The constant restructuring continues at great expense. The system never gels because it never gets the opportunity to do so. Now the bankers want more of the same.

Keeping track of the various entities the McGuinty government has set up to manage health care is a challenge. The Local Health Integration Networks have been a colossal flop. We already have an Ontario Health Quality Council – but the bankers want a Commission on Quality and Value for Health Care. The appetite for this level of bureaucracy is endless, especially after gutting the actual Ministry of Health. Recently the Central East LHIN complained they were getting no new staff but were receiving increased responsibilities from the province for capital projects. The same LHIN has no problem approving plans that continually remove front line care providers from their jobs while expecting hospitals to do more.

The system can be improved, but let’s make it about quality first. When we have quality, every health care expert agrees the costs will no longer be an issue. Instead of being stampeded by the banks into doing something rash, we need to take the time to figure this out and get it right.

Freedom of Information, the LHINs and the Ministry of Health

OPSEU recently submitted a number of freedom of information (FOI) requests to the Ministry of Health, one of which is still making its way through the system.

The early responses we have would suggest that “officially” little information is finding its way from the Local Health Integration Networks to the Ministry of Health. The Ministry of Health’s access and privacy office has  told us that the only way to gather this information is to apply separately to all 14 provincial LHINs. It would be up to us to collate this information to get a provincial snapshot of what’s going on.

One has to wonder how the Ministry is making policy decisions if it doesn’t really collect such information from the LHINs?

The information the Ministry claims not to have includes detailed budgets for each of the 14 LHINs. It is true that you can find, with considerable effort in some cases, a very basic level budget on their web sites. However, we were told we would have to ask the LHINs directly for a more comprehensive view. The Ministry claims it does not possess this level of budget information, yet it was concerned enough a few months ago to insist the LHINs tighten up their spending procedures.

After hearing a discussion of staff-management ratios as part of their scorecard system, we asked to see this information from the Central East LHIN. We were told we couldn’t have it because this information belonged to the hospitals, not to the LHIN. Ontario is the only province in Canada not to subject its hospitals to FOI legislation, although the Minister of Health has been promising to change this since last fall. Once the LHIN collects it, one would normally believe it to belong to the LHIN. When we requested this same information from the Ministry, they claimed they do not receive these detailed scorecards from the LHINs. They claim to have no idea how many managers occupy positions in Ontario hospitals relative to front-line staff.

When we initially submitted a form to the Ministry asking for information about what the Central East LHIN was describing as $55 million in hospital “efficiencies,” we were sent a letter with our original request form telling us to resubmit it to the LHIN directly. The Ministry does not, apparently, provide direct access to LHIN information. Nor do they forward these requests on.

When we asked about the use of private consultants by the Ministry, they said we could have the information post 2004-05, but it would have to exclude e-Health and the LHINs, for which we would have to make separate applications.

When we asked for any review or evaluation of the pilot projects that utilized retirement homes for hospital “alternate level of care” (ALC) patients, we were shocked to receive a letter from the access and privacy office that said no such evaluation existed. Yet the Ministry has established new rules and is pushing hospitals to proceed in finding more retirement homes to house their ALC patients. How did they decide this without ever evaluating the pilots?

Similarly, when we asked for any correspondence between the LHIN, the Ministry and the Northumberland Hills Hospital around the closure of that hospital’s diabetes clinic, we were told none existed. Yet the LHIN claims the clinic was directly funded by the Ministry. Nobody formally expressed any concerns around the fact that 2,300 patients would be orphaned by the closure, or where alternate services might be provided? It’s absolutely breathtaking.

While there has been much discussion of problems with the LHINs, nobody yet has pointed out that finding province-wide information has become 14 times more difficult as a result of their creation in 2006.

The Minister and the OHA speak frequently about openness and transparency, but the reality on the ground is somewhat different.

Where is the information?

Cobourg beds receive partial reprieve

Beds on the chopping block at Cobourg’s Northumberland Hills Hospital may receive a reprieve after the Central East Local Health Integration Network agreed today to enter into negotiations to fund 11 interim long term care beds and open up to eight more restorative beds.

This winter the community learned the hospital planned to balance its budget by eliminating 26 beds, closing its diabetes clinic and cutting all outpatient rehab services.

The CE LHIN board made it clear the funding was one-time only. The LHIN had looked for community proposals to take the patients who would likely be orphaned with the closing of these beds. There were no immediate facilities willing to take this on, however, a former Port Hope retirement home has expressed interest in renovating towards becoming a 20-bed convalescent care home.

While the LHIN is treating the two events separately, there is little doubt that the hospital beds may again be at risk once the Port Hope facility opens.

Funding to keep open the hospital’s existing interim long term care beds will come from the LHIN’s Aging at Home fund, although these funds will be incorporated into the hospital’s budget.

The funding became available when a retirement home in the region had decided it was not going to upgrade its facility to accommodate the new requirements of the Ministry of Health to accept Lakeridge Health’s alternate level of care (ALC) patients.

Some of those beds have also been reallocated to a Bowmanville retirement home with close ties to a nearby nursing home.

According to the LHIN, ALC patients who are in these beds will no longer be considered ALC for statistical purposes, as they will be receiving care in an appropriate setting. Why they were previously counted while in the same beds is an open mystery.

Last week the community held a rally in front of MPP Lou Rinaldi’s constituency office. Rinaldi came out to address the group, stating he was working on a plan to save the outpatient rehab services.

OPSEU had used the Freedom of Information process to secure any correspondence between the Ministry and NHH regarding the closure of the diabetes clinic.

Closed at the end of April, the clinic had served 2800 residents. While a Port Hope clinic said it was able to take 500 of these patients, it left 2300 Northumberland County residents without any diabetes support. Since then the Ministry has told doctors that patients can be referred to the Peterborough, Campbellford and Quinte hospitals. Quinte has also recently closed its diabetes outreach from its Picton site.

Suprisingly, OPSEU was told by the Minstry’s Access and Privacy office that no such correspondence existed on the diabetes clinic between the Ministry and NHH. How could the Ministry lose access to a program in an entire county and have no written correspondence with the hospital?

When OPSEU met with the Minister of Health’s policy advisor on this issue, she suggested that these patients could return to their doctors. However, the region’s doctors had been asking the hospital where they should be referring these patients.

During the meeting one of the board members expressed the hope that the community would view the Local Health Integration Network has having responded to their concerns. Clearly, with regards to Northumberland County, the LHIN still has a long way to go.

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May 19th the Northumberland Hills Hospital issued a press release stating that all 110 of its beds would remain open due to the current lack of community alternatives for the hospital’s alternate level of care patients. The announcement will not alter the hospital’s original plan to cut its diabetes clinic and outpatient rehab services.

LHIN discovers community agencies have quality and financial management issues

For years the Ministry of Health has beat the drum on the benefits of shifting hospital-based services to community agencies. Now that the Local Health Integration Networks (LHINs) are signing accountability agreements with these agencies and monitoring their activities, the Minister of Health may wish to have second thoughts about this direction.

At its May 18 meeting, the Central East LHIN board were given their first look at the difficulties of working with this sector, which includes community support services, community mental health and addictions, community health centres and the Central East Community Care Access Centre (CE CCAC).

Staff cautioned that the agencies had data quality issues, meaning any evaluation of their performance had to be taken with a large grain of salt.

While the LHIN claims it has to do a lot of initial handholding, including actually filling out reports for some of the smaller agencies. The LHIN claims that some agencies have been submitting blank forms, while others are not even familiar with how to use an Excel spreadsheet. Some have reported balanced budgets, only to have deficits revealed through an audit. The LHIN reported that staff turnover is very high at these community agencies. As soon as the LHIN trains someone in how to carry out the reporting requirements, the individual ends up leaving to work somewhere else.

“We are bending over backwards to work with these groups,” said CE LHIN Chair Foster Loucks, “but some day there is going to be a reckoning.”

The LHIN has said that some of the small agencies may be forced to integrate with other health care providers if they cannot carry out the administrative reporting required of them. The LHIN has also threatened providers who cannot meet deadlines with fines.

Paul Barker, a Senior Director with the CE LHIN, said there were a number of organizations in the community sector where program quality and financial management is an issue.

Many of the agencies the LHIN is left to work with have chronic deficit situations, a situation the Ministry of Health overlooked, showing more interest in recouping surpluses than giving consideration to growing deficits.

Unlike the hospital sector, there are no industry benchmarks by which to measure the performance of these community-based organizations.

One LHIN board member looked at the charts and wondered if it was a case of “garbage in, garbage out,” since the information was unreliable.

The LHIN also said it was having difficulties even establishing what the benchmarks should be, especially in mental health.

Board members had a difficult time understanding the context of the projected deficits for these agencies without having their full budgets. The biggest deficit is being faced by the CE CCAC which is looking at a $9.6 million deficit to finish the fiscal year.

Given the Minister of Health’s other mantra – of evidence-based decision-making – one has to wonder where any of the evidence existed to suggest taking quality services out of accountable public hospitals and giving them to a select group including a number of poorly run community-based agencies was ever going to benefit Ontarians.

Video: OPSEU pickets the Liberal policy convention in Collingwood

About 350 OPSEU members picketed the Liberal policy conference at Blue Mountain Resort in Collingwood May 14th.  Upset about a spring budget that placed corporate tax cuts ahead of public needs such as health care, education and social services, OPSEU members stopped cars, handed out leaflets, and spoke to members of the public. A short video of the four-hour picket is below.

In Brief: Matthews reviewing competitive bidding / OHA to gag professionals

While she still expects to lift the moratorium on competitive bidding in home care, Health Minister Deb Matthews told the London Free Press that a review of competitive bidding is currently underway. OPSEU has asked for details. … The Ontario Hospital Association is proposing a new bylaw that would prohibit all board-appointed professional staff from engaging in any conduct that would adversely affect a hospital’s “reputation or standing in the community.” The bylaw suggests these professionals must raise concerns through proper channels. The doctors could lose their privileges at the hospital should they speak out. While the government has been dragging its heels on bringing hospitals under Freedom of Information legislation – something Health Minister Deb Matthews had promised at last year’s OHA conference – it appears the hospital association is preparing to gag those who are most likely to serve as whistleblowers. …. The Milton Canadian Champion addresses the new “Excellent Care for All Act” in its May 13 editorial. The Milton newspaper questions whether the bill is needed. “We find it incredibly frustrating that we need yet another piece of legislation telling people they should be doing their jobs properly,” they write. “Our health-care system has been on life support for years. It will take more than the Excellent Care for All Act to right this mess.” The newspaper suggests what the system really needs is more funding to expand hospitals and hire more staff.

Peterborough peer review deeply flawed

April’s release of the peer review into the Peterborough Regional Health Centre has unleashed a storm of criticism after recommending the closure of 71 beds and reduction of 151.5 full-time equivalent jobs at the hospital. After years of planning and building the new hospital, the cuts would take it to below the bed count it originally had at the Civic Hospital and St. Joseph’s Health Centre.

Having raised funds and paid dearly for the local share of the new hospital’s costs, Peterborough’s residents are understandably upset about this turn of events.

If the bed cuts take place, it will mean about a third of the new hospital beds will remain empty and unstaffed.

Worst still, the Peer Review indicated that at the “leap of faith” the LHIN took in approving its accountability agreement in March may be in vain – as drastic as these proposed cuts are, the Peer Review indicates that there will not be sufficient savings this year to balance the budget.

Did the Peer Review get it right?

What is remarkable in the final report is how little reference there is to anything learned on site by the peer review. Most of the recommendations are based on provincial benchmarking, not on local conditions. Surprisingly, given the Peer Review questions the quality of much of Peterborough’s data, it is not hesitant to make major decisions based on what it feels the data should be.

There is little reference to the high percentage of seniors Peterborough serves. Nor is there any reference to seasonal fluctuations resulting from an influx of summer cottagers. Nor is there any reference to what some patients say are high cancer rates in the city. All of these are considerable factors that draw on services from the hospital.

Further, in most of the performance metrics the Peer Review considered, most are actually middle of the pack or better, suggesting the Peer Review isn’t looking at Peterborough because its badly operated, but because of its burgeoning deficit.

Some examples: Four of its six safety indicators are better than the provincial average.  It indicates its ER is already efficient, boasting the third lowest rate of admission from emergency department visits among 21 peer hospitals.  The average length of stay in the intensive care unit for medical patients is among the lowest in the peer group, 15th of 21 hospitals.  Average length of stay for surgical patients in the ICU is 11th of 21 hospitals.  It states the surgical program operates very efficiently, usually putting it in the top 25 per cent provincially. Average length of stay for in the newborn and neonatal unit is 5.12 days, placing Peterborough 13th of 21 peer hospitals. The report lauds the mental health program as “one that is effectively managed.” It says the hospital’s end-stage renal disease program is generally efficient.  While larger than it needs to be, the peer review said it was impressed with the equipment and physical plant of diagnostic imaging. While complaining about the wait for non-urgent CT scans, it does acknowledge the hospital is providing many more scans than they are getting paid for. It says the lab is “very efficient in its utilization of laboratory procedures” – the fourth lowest. It said the management of medical and surgical supply costs was among the best.

Further, the execution and redevelopment of the hospital is described by the Peer Review as “excellent,” the construction on budget and with very few change orders compared to other such projects.

These are hardly examples of a hospital that is being badly run.

Some of the comparisons are flawed, given not all of the peer hospitals offer the same level of service. For example, it states PRHC has the 3rd highest costs in interventional cardiology and angiography when compared to its peer group. Many of these peer hospitals do not even offer angiography.

Many of the recommendations are contradictory.

While the peer review acknowledges the difficulties in retaining hospitalists, it actually proposes decreasing their annual income to save money. How will paying hospitalists less actually improve retention?

It complains of the number of alternate level of care (ALC) patients, but then the report suggests that the hospital may have been designating more patients as ALC than the definition warranted.

While it proposes cutting 71 beds, it expects Peterborough to make available 20 to 30 beds every day at midnight in order to accommodate the following day’s admissions. It also states that patients are left in intensive care longer due to a present lack of available medical beds. How will fewer beds change this situation? Surprisingly, it complains of a lack of revenue from premium accommodations, yet acknowledges they won’t even have these beds if their plan is implemented.

Up until the time it moved into the new amalgamated facility, Peterborough’s expenses and revenues ran a roughly parallel path, expenses slightly higher than revenues. However, while the expenses continued on a rather predictable path, revenues started to flatten after the move to the new hospital.

Had funding for Peterborough been modestly better over the last six years, the financial situation would have never gotten this out of control.  Today Peterborough has a working capital deficit of almost $90 million.

What is remarkable is the number of recommendations that involve more funding, not less. Nowhere are these new expenditures totaled.

The report is most scathing when it describes the assumption made by the hospital’s leadership that additional funding would be coming.  Had funding come years earlier, Peterborough today would be a reasonably well-functioning hospital by any standards.

The report also ignores the 11 other hospitals the province chose to rescue from dire financial straits. Was it reasonable to expect the same would happen for Peterborough? Yes.  So why didn’t it?

The bottom line is Peterborough is a large regional health care provider that needs to be funded appropriately to get the job done. Too many of the assumptions and recommendations in the peer review are pie in the sky, reliant on external conditions that simply don’t exist. It is compared to peer hospitals that often operate in large urban centers where multiple hospitals are present.

The Peterborough area has too few long term care beds. The Central East CCAC is struggling financially – this winter it was only accepting the most acute patients. The LHIN has some money for interim ALC beds, but it’s not nearly enough for the region, and there is no indication that enough retirement homes will be willing to step up their facilities to take on these patients.

This winter’s peer review is a deeply flawed document. The province needs to first provide all the post-construction funding Peterborough was promised, and next look at how it can help the hospital get on firm footing without gutting the needed regional services the hospital was initially built to provide.

In Brief: Private Alberta hospital declares bankruptcy / Temple nurses declare victory in “gag rule” strike

On these pages we have run numerous reports of US private hospital bankruptcies. In today’s Toronto Star Gillian Steward reports on a private Alberta hospital that declared bankruptcy last week. Like its counterparts in the US, the public will end up picking up the pieces from the Health Resource Centre, which was under contract to Alberta Health Services to perform surgeries the other Calgary hospitals couldn’t handle. Calgary faced a shortage of operating rooms after former Premier Ralph Klein closed three public hospitals in the city. The HRC had been paid 10 per cent more than the cost of providing surgeries at the public hospitals. Obviously it wasn’t enough. Now Alberta has gone to court to pay the receivership fees in order to keep the place operating. Meanwhile, New York city is trying to rescue another hospital from bankruptcy after the legendary St. Vincent hospital was forced to permanently close its doors this spring. Westchester Square Hospital, a 205-bed facility in the Bronx, has come up with a five year survival plan. The hospital had last declared bankruptcy in 1997. Meanwhile the city’s public hospital system is planning on laying off another 500 workers. … After a 28 day strike, nurses at Philadelphia’s Temple University Hospital defeated management’s plan to break their union and impose a gag rule to prevent the nurses from criticizing the hospital. Temple spent an estimated $5 million a week hiring scab labour, providing transportation, housing, food and security. The nurses made the strike about quality patient care. To view a video of the strike, see below:

Cobourg to take protest to Lou Rinaldi

Faced with significant cuts to their hospital, Cobourg residents are planning a protest in front of their Liberal MPP’s office this Thursday at 4 pm.

Northumberland Hills Hospital has lost a diabetes clinic, all outpatient rehab, and 26 inpatient beds in the latest round of belt-tightening. Whereas other Liberal MPPs have secured additional funding to save or enhance services at their hospitals, the local community sees Lou Rinaldi, their local MPP, as doing little beyond offering excuses.

The demonstration will take place in front of the Fleming Building, 1005 Elgin St. W. in Cobourg at 4 pm on May 13th.

For more information, contact either Linda (416-809-2601) or Peggy (905-885-4005).

In Brief : CCACs cut referrals to speech-language pathologists / Cracking down on sick days / More

Waits are increasing in Ontario for speech-language pathologists, and according to the Toronto Star, some patients are being told to pay out of pocket to hire therapists at rates of up to $150 per hour. The newspaper reports that Community Care Access Centres (CCACs) have cut the amount of referrals to speech-language pathologists, instead focusing their funding on “higher priority cases.” A spokesperson for Health Minister Deb Matthews acknowledged the wait lists, but said “those who need service the most are getting it.” … As Ontario grapples with moving alternate level of care patients from hospitals to retirement homes, patients may wonder if their shift out of the hospital may eventually come with a bill attached should the province follow British Columbia’s lead. BC is quietly phasing in fees for convalescent care of $29.40 per day, or $894.40 per month. Similar fees had already been in place for palliative and respite care.  Patients can apply for a reduction in the rate through a hardship provision. … The Ottawa Hospital wants to reopen the deal it just signed in March with CUPE. Claiming it was getting less money than expected, the Ottawa Hospital says it cannot afford the deal. CUPE is looking at pushing the dispute into arbitration. Meanwhile, the Ottawa Hospital has calculated that asking staff not to be sick will reduce the number of sick days.  CEO Dr. Jack Kitts sent a memo out to all staff stating the hospital’s absenteeism rate is “significantly worse than most of our peers across the province.” On average, workers at the hospital call in sick 12 to 13 times a year.  The Ottawa Hospital CEO would do well to look at Professor Linda Duxbury’s study on role overload to gain a better understanding why his staff is burning out. (See  https://opseudiablogue.wordpress.com/2010/02/02/health-care-workers-face-anxiety-fatigue-burnout-as-a-result-of-“role-overload”-study/) The average sick days lost at Ontario’s hospitals is 10.3 days (2009), although other hospitals are struggling with similar absenteeism rates to the Ottawa Hospital, including Orillia Soldiers Memorial Hospital and the Peterborough Regional Health Centre. … A Quebec patient who wasn’t told she tested positive for cervical cancer three years ago is suing the hospital that conducted the test for $760,000. The Charles-Lemoyne Hospital in Longueil never called about her test results. The cancer is now inoperable, and the woman has been given months to live.