Skip to main content

3000 more hospital beds? Rhetoric falls short of realty with Doug Ford's government

Soon after the Budget, the government announced they would spend $27 billion on hospital infrastructure over ten years and create 3,000 more hospital beds.


For a moment, it may have seemed that we had prized a small victory from the Ford government.  The movement did, after all, force them to run on a promise of ending hospital hallway healthcare, and squeezed out a bit more in-year funding for hospitals last fall.  

Unfortunately, as with so much from this government, the rhetoric does not match the reality.  Here's why this is much less than it might appear on first blush.

[1] While the government promises to “create” 3,000 more beds over ten years, they do not promise that the hospitals will operate 3,000 more beds than they currently do. There is no promise to increase hospital bed capacity. 

There isn't even a promise to have 3,000 more spaces for beds.  As our hospitals are aging, spaces for some existing beds will no longer be usable in ten years. Will they be replaced?  The announcement doesn't say.  So it is not at all clear from this announcement how many usable spaces for beds will exist ten years from now.   

As will be discussed in next week's post, the provincial government is cutting the real funding for hospital operations -- so it is quite possible, or even likely, that hospitals will cut staff, and with that, the operation of some beds. As has already been happening for years, hospitals will have to ship patients out quicker and sicker.   

So 3,000 new spaces for beds may be created in ten years, but there is no promise that there will be 3,000 more spaces for beds, much less that 3,000 more beds will be open and in operation. 

[2] Even if the government was actually promising to operate 3,000 more hospital beds that would not create enough new beds to keep up with population growth and aging. By our estimate, those factors will mean operating hospital beds will have to expand by 6,000 just to keep existing service levels. In other words, the Conservatives are actually promising to reduce capacity relative to population by about 3,000 beds -- almost a 10% cut. This is similar to the PC announcement for new LTC beds – a promise which also does not keep up with aging and population growth -- except the cut relative to population for the hospital sector is even larger. 

[3] The projects will be developed through privatized P3s in many cases. This system has been consistently shown to waste tax dollars. Approximately $8 billion has been wasted on over-priced P3 risk transfers.

[4] The last Liberal Budget (2018/19) revealed that the Liberals spent $2.74 billion in 2017/18 on hospital infrastructure and planned to spend another $2.74 billion in 2018/19. The new annual average spend for the next ten years is supposed to be $2.7 billion – almost as much as the Liberals budgeted for the last two years. But, over ten years, the PC promise of $2.7 billion will be worth significantly less than what it is currently worth due to inflation.  So this will be a decrease in spending. A larger and older population in the province will also reduce the impact of the spending.

[5] The PC 2019/20 Budget reports that they actually only spent $2.63 billion in 2018/19, about a hundred million less than the Liberals’ Budget plan.  

[6] For 2019/20, the PCs plan to spend only $2.36 billion.  This is the only estimate that counts for very much, as the government can easily change their promised spending with every Budget. (Indeed the 2019 Budget does not even commit to a specific hospital infrastructure spend in 2020/21). As noted, $2.36 billion is less than what has been Budgeted in recent years -- and $380 million less than what the Liberals spent the last year they ruled the roost.

[7]  The total spend over the last ten years on hospital capital projects has been reported in Budgets at $27.5 billion - - a little bit more in nominal terms than the PCs plan for the next ten years, but much more than the PCs plan once inflation and population growth are factored in.  

[8] It is also noteworthy that for the five years 2011-12 through 2015-16, the Liberals actually spent almost $3 billion a year on hospital infrastructure, significantly more than the average annual spend the PCs project for the next ten years, even in nominal dollars. Notably, just at the conclusion of this five year five year period, the Auditor General reported (in late 2016) that hospital infrastructure spending was falling far short of need. Click here for more details. 

Bottom line: our hospital bed capacity problem is set to get worse, not better.

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...