By Joel van der Veen
June 14, 2010

DAVIDSON - The Heartland Regional Health Authority says it has approved a balanced budget of $86 million for the 2010-11 fiscal year, but also warns of the need for cuts and reductions as costs increase and resources shrink.

"It's a challenging fiscal year," Heartland Health CEO Greg Cummings said. "Times are getting tighter and tighter."

In a press release issued on May 26, Cummings announced both a budget increase of 2.6 per cent over last year - to a total of $86,560,331 - and an overall reduction of $1 million in operating costs.

While patients in Davidson will continue to see the same level of care, he said, the region is beginning to discuss developing a new model of health care to help reduce costs in the long run.

This includes the development of primary care teams with physicians and nurse practitioners, as well as a greater emphasis on home care and health promotion.

"We have to tighten up some of our administrative process," Cummings said.

The region is required by the ministry to balance its budget each year, and historically has often found itself in a surplus situation, he said.

But with rising costs and declining resources, it has become more challenging to balance the books, and so the region has established long-term plans in hopes of cutting expenses while maintaining existing services.

"Almost half of this (reduction) needs to come from reducing overtime, sick time and work-related injuries," Cummings said in a statement. "The remainder is to come from general efficiencies and shared services."

While the budget this year increased by 2.6 per cent, the increase for regional health budgets is usually around 10 or 12 per cent.

Some strategic investments, which are intended to reduce costs over time, include an increased focus on enhancing primary care services, improved infection control and safe work practices, and what is called "service excellence/contagious kindness" training for staff.

This year's budget is aligned with the both the provincial health sector's 2010-11 Strategic Operational Direction and the region's newly-approved Destination 2015 Strategic Plan.

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