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P3 corporations give award for crap financing deal

Nouveau CHUM The Canadian Council for Public Private Partnerships has honoured the Centre hospitalier de l'Université de Montréal (CHUM), the Collectif Santé Montréal (CSM) and Infrastructure Québec with its 2012 "Gold Prize" for financing construction of the new CHUM. Nouveau CHUM Apparently, the award goes for the project with the worst financing.  As   Luc Fouquette, the Collectif's General Manager said, "This funding is also the very first for a PPP project in  Canada  with a BBB rating (BBB+ by DBRS and Baa2 by Moody's)."  P3 financing is among its worst attributes, costing the public billions in extra expense compared to public financing.  The BBB credit rating is a new low  for P3 financing.  Every single P3 that has been broadly marketed so far in Canada has enjoyed an A-level rating -- until this deal came along.     Nouveau CHUM This will add even more costs for taxpayers.  Investors, in contrast, should see a nice return.

More privatization via Liberal "community care"

Health care privatization continues to come to Ontario via the Liberal government's version of "community care."  Most obviously this comes by moving services from public hospitals to poorly regulated and for-profit retirement  homes.   That has been a repeated theme in the Liberal government's version of community care. Alex E. Proimos Another mainstay is moving services to for-profit "home care" providers.  Except, now for-profit home care is often for-profit clinical care.     Typically, the Liberal line is we need to move services and clinics out of public hospitals and into the home.   But now the government organizations that oversee home care (Community Care Access Centres  or CCACs) are beginning to celebrate moving services out of the home and back into clinics.  But this time the clinics are run by for-profit corporations, not public hospitals.   In a recent news story sparked by the opening of a new clinic, the Erie-St. Cla

P3 costs rise as scandal sours investors

MUHC The Washington Post reports that the sales "of Canadian project-finance bonds are lower this year as an ongoing investigation of alleged corruption in the Quebec construction industry makes the debt more expensive to issue." The American paper adds that the "inquiry into corruption in the Quebec construction industry, which led to the resignation of Montreal Mayor Gerald Tremblay on Nov. 5, is souring sentiment among investors in private-public partnership bonds linked to projects for hospitals and universities in Canada’s second-largest province." The McGill University Health Centre (MUHC) P3 project is now under police investigation. The National Post reports that questions are being raised whether " illicit cash payments helped the SNC-Lavalin consortium win the MUHC contract." Three weeks ago the police raided the downtown headquarters of the MUHC. The National   Post notes one unconfirmed report alleged that there was a secret $2

No progress on hospital superbugs

There has been no progress stopping the spread of superbugs in Ontario hospitals according to government data. Reported C. difficile rates are about the same as they have been, starting this past year at 0.35 cases per thousand patient days and ending it at the same level.    The annual average was also 0.35. Month Rate Oct '11 0.35 Nov 0.32 Dec 0.36 Jan '12 0.35 Feb 0.38 Mar 0.37 Apr 0.31 May 0.32 Jun 0.34 Jul 0.38 Aug 0.32 Sep 0.35 Ave. 0.35 Similarly, C. difficile rates in the first year of public reporting ( Aug 2008-July 2009 ) also averaged 0.35 per thousand patient days: Month Rate Aug-08 0.39 Sep-08 0.44 Oct-08 0.39 Nov-08 0.35 Dec-08 0.35 Jan-09 0.36 Feb-09

Moving patients from public hospitals to private retirement homes

Health Sciences North hospital in Sudbury is planning to replace 30 hospital beds with a 25 bed unit inside a private retirement home, the  CBC  reports. OCHU/CUPE members protest earlier bed closures at Health Sciences North Richard Joly of the Northeast Community Care Access Centre says  "We are committed to reducing the population that are currently residing in hospital." Like many other hospitals, Health Sciences North is grappling with a significant deficit as government funding is squeezed.   Six million dollars in the case of HSN. Hospital officials claim the hospital beds cost $750 per day each and putting 25 beds in a private retirement home would cost $4 million less than having them at the Memorial hospital site.  In February, the hospital will stop funding the 30 beds. Similar strategies have been tried in other locales with disastrous results. In Windsor , a local hospital paid hundreds of thousands of dollars to remodel a for-profit retirement hom

Mississauga-Halton gets bigger home care increase

Another home care funding announcement came out today, this time for Mississauga-Halton. Mississauga The news this time was a little better, with a 4.1% funding increase for home care via $5.12 million for the Mississauga-Halton Community Care Access Centre.   That is a bit better than the Hamilton-Niagara area, which received 3.25%, and the Ottawa area, which received 3.74%.  This is the first CCAC to actually get the 4% funding increase suggested by the provincial government.

Docs up $8,300 each in recent negotiations?

Dr. Michael Rachlis , a well known expert on the health care system, suggests there is more to the recent deal the province hatched with the Ontario Medical Association than has been reported. He estimates that increased utilization and "fee drift" will mean an extra $200 million for doctors.   With about 24,000 full time (equivalent) doctors in the province, that works out to an extra $8,333 each.  That is small change compared to some of the income improvements the docs have achieved over the last decade, but it is pretty significant by anybody else's measure.   Certainly it's a lot better than what the McGuinty government is offering to the rest of us further on down the pecking order (see the McGuinty government's list of concessions demands for its own workers here ) . OCHU long ago flagged the mighty increases the doctors were getting from the McGuinty government, but this was only identified through a retrospective review of annual government Budget