Skip to main content

Posts

Hospitals rely on private sector funding more and more

The Canadian Institute for Health Information (CIHI) reports that total expenditures on Ontario hospitals increased to $23.7 billion in 2016. This is an increase of 2.4% since 2015 and 6.1% since the 2012. While provincial government expenditures increased 4.7% over the four years between 2012 and 2016, private sector expenditures on hospitals increased at a much faster rate -- 15.8% .  That is more than three times the percentage increase of the provincial government increases.  Private sector expenditures increased $124.9 million in 2016 to $3.62 billion.  That was a typical increase. The four year private sector increase was $493.1 million, averaging $123.3 million per year.   That's  a lot more than chump change. Key types of private sector payments to hospitals are payments by private insurance companies and out-of pocket payments by individuals.  Hospitals are now relying significantly more on private sector funds.  In 2012 private sector expenditures accounted

Ontario is not sinking into deficit: Better public services can be won

The Financial Accountability Office (FAO) predicts significant deficits over the next several years - despite also predicting significant economic growth. Using the government's accounting method, the FAO is predicting budget deficits of $0.5 billion this year, increasing to $3.6 billion in 2021-22.  If   the FAO is right then we do have a problem in terms of building our campaigns for better funding. Deficits will be used to clobber popular expectations for improved public services.  Already the right has taken up the FAO report to spread the deficit alarm.   While the FAO does make some useful other points, its conclusions about the deficit are likely off base. Revenues and Expenditures: The FAO expects tax revenue to grow 3.9% on average over the next five years, slightly below their expectations for nominal economic growth.  This is significantly better than their forecast for expenditure growth of 3.3% (which, notably, is a little below the underlying cost and demogra

Hospital funding increase less than last year's

In  the lead up to the Budget, the government crowed  that they had heard the public and would improve funding for hospitals. However, based on government  announcements, they actually plan to lower the hospital funding increase this year.   They state they will increase hospital funding $518 million, a 3% increase.  But, on closer inspection, the funding increase announced for last year was significantly higher. In the 2016 Budget, Ontario announced that it would increase hospital funding $345 million -- about a 2% increase.  Subsequently, the government announced another $140.3 million for hospital funding in the Fall Economic Statement – bringing the total increase to $485 million.   That is, of course, already quite close to the much ballyhooed hospital funding increase of $518 million for 2017/18.  But it looks very much like the actual hospital funding increase in 2016/17 was higher than $485 million – higher in fact than the $518 million increase announced for 2017

More spending on new hospitals and new beds? Nope

Hospital funding:  There is something off about the provincial government's Budget claims on hospital capital funding (funding to build and renovate hospital beds and facilities).    For what it is worth (which is not that much, given the long time frame the government cites), the province claims it will increase hospital capital spending over the next 10 years from $11 billion to $20 billion – or on average to about $2 billion per year.   But, this is just a notional increase from the previous announcement of future hospital capital spending.  Moreover, even if we did take this as a serious promise and not just a wisp of smoke, the government's own reports shows they have actually funded hospital infrastructure about $3 billion a year over the 2011/12-2015/16 period. So this “increase” is really a decrease from past actual spending. Even last year's (2016-17) hospital capital funding increase was reported in this Budget at $2.3 billion - i.e. about 15% more th

Cash give-aways haven't helped the Liberals so why double down?

T he government has answered the question about who migh t benefit from the improved fiscal situation of the province .  A t least in part. The government's announce ment that they will spend $2.5 billion over three yea rs on hydro subsidies ( an average of  $ 833.3 M per year) takes them further down a road th ey have already tried , without much to show for it .   P remier Kathleen Wyn ne imp licitly confirmed growing government revenue but cautioned that th is latest cash give-away is putting them closer to falling back into deficit.  S he stated : " Thanks to a provincial economy that is leading all of Canada growth, we can make this change and stay on track for a balanced budget next year and the years to follow.  But it’s going to be a lot harder now and we’ll remain a lot closer to the line." So far these sort of cash give-aways have accounted for the large majority of the new, in-year spending that has marked the tentative move away from gove

Ontario government spending grows. But the deficit falls like a stone

Yesterday’s third quarter report from the Ministry of F inance indicates that their estimate of the deficit for 2016/17 fiscal year has fallen by $2.4 billion -- from $4.3 billion to $1.9 billion. This despite the announcement of another $223 million in new spending increases for 2016/17.  If you recall, the government announced even more in-year spending increases in the fall for Hydro rebates and hospitals.   Since the 2016/17 Budget, they have now increased program spending about $ 1.1 billion through in-year increases .  That is an in-year increase in program spending of 0.9 2 %.   This is quite unusual for a government that typically under-spends their budget.   The new increased expenditures announced yesterday are mostly on a specific hospital based service and drugs: ·     Ontario Drug Benefit Program: an additional $106.0 million to address funding requirements for the Ontario Drug Benefit program. ·     Malignant Hematology including Ste

The end of provincial public sector austerity in Ontario?

The experts appointed to review the claim by the Auditor General that the surpluses in the teacher and civil servant pension plans cannot be counted as government  assets have reported .   Importantly they have sided with the government and against the Auditor General, Bonnie Lysyk. Lysyk's pension surplus accounting policy required the government to add $10 billion to the provincial debt and $1.5 billion to the deficit last fall. Only then did she  approve the final provincial government books for 2015-16 (the Public Accounts).   The government estimates this policy would add $2.2 billion to the deficit this fiscal year (2016-17).   Indeed, a ccording to the Finance Ministry's Fall Economic Statement t he extra program expense associated with this policy is increasing at a rate of $600 to $900 million per year through until at least 2018-19.   The Minis try of Finance reports that this policy would add $2.8 billion   in program expense in 2017/18 and $3.7 billi