Skip to main content

Are hospitals primarily providers of acute care?

baby feet


Hospitals are often stereotyped as providers of acute care services.  In fact, acute care accounts for a relatively small portion of total hospital services.

As noted a few days ago,  costs per acute care patient (or, more exactly, per "weighted case")  in Ontario are significantly below the national average, coming in at $5,174  in 2010-11 (and $5,184 in 2011-12). There  was 1,484,046 weighted acute care (and newborn) cases in 2010-11 in Ontario. So  the total acute inpatient cost is about  $7,678,454,004.

In 2010-11, the total hospital sector expense (funded from both government and other sources) was $20.6 billion according to figures in the 2010 Budget.  

As a result, acute care spending amounts to only 37.2% of all hospital spending.

In other words, acute care is a significant part of hospital activity --but it is in a decided minority in overall scheme of things going on at hospitals.  

Good news for P3 privatizers, Ontario's privatized P3 Highway, the 407, saw profits increase 85% to $76 million in the second quarter of this year.   That's on revenue of only $205 million.  

Not too bad (for them).

Here's the bad news for us, however.  Revenues increased thanks to an 8.6% increase in the per trip costs.  

The P3 is operated by a subsidiary of Ferrovial SA, the Canada Pension Plan Investment Board and SNC-Lavalin (the latter was recently caught up in a major P3 hospital scandal in Montreal, which saw the arrest of its former CEO).

Comments

Popular posts from this blog

Huge cuts in public sector wages predicted

The Ontario Financial Accountability Office (FAO)   says  that, with inflation, real wages in the public sector will decline 11.3% over the three year period  2021/2 - 2023/4 .  This would radically deepen the trend towards lower wages during the last ten years.   The FAO reports that since 2011, the average annual salary for the Ontario public sector employees (defined here as employees of schools, colleges, provincial government, provincial agencies, and hospitals) has increased by $10,385   -- or 1.6 per cent on average annually.  This is the lowest increase of all the sectors and lower than inflation, which averaged 1.8 per cent per year. Over the ten years that would be about a 2% pay cut.   The FAO reports that wage settlements were the lowest in the provincial public sector over the last decade:   Hospital Wages Especially Challenged: The FAO predicts hospital wages will increase even less than in the public sector  -- just ...

Too many public sector workers in Ontario?

Opponents of public services often try to portray the public sector as having grown disproportionately.  In fact, since 1976, the number of public sector employees has not quite kept pace with the population. In 1976, the number of public sector employees in Ontario  as reported by Statistics Canada averaged 830,800.  By 2012, the number had increased to 1,330,700 -- a 60.2% increase.  That sounds like significant growth -- true. But the population has increased  from 8,413,779 in 1976 to 13,505,900 in 2012, a 60.5% increase.   In other words, population growth has run slightly ahead of the growth in public sector employment.     In 1976, close to 10% of the population worked in the public sector.  It stayed pretty much this way until the Mike Harris government came to power when it dipped below 9%.  It returned close to the historical range in the last six years or so, declining in 2012 to below the 1976 averag...

Are health care administrative expenses out of control in Ontario?

The Progressive Conservative government has justified its health restructuring plans with the claim that administrative expenses are much higher in Ontario than in Canada.  When introducing the reforms, health minister Christine Elliott  claimed , “Over the last five years, Ontario has spent 30% more than the Canadian average in administrative expenses on its health care system.”   Elliott did not indicate her source of information. Presumably, however, the Progressive Conservatives are referring to the CIHI simplified and user friendly “ Your Health System ” graphs. Those graphs show “administrative expenses” in Ontario at 5.8% in Ontario while it is 4.5% in Canada.   This CIHI measure is actually fairly narrowly defined. It is the percentage of “the legal entity’s” total expenses associated with the administrative, finance, human resources and communications functional centres. However “the legal entity” used for this estimate is [1] only...