More Money for District Health Authorities Next Year

As part of the ongoing budget deliberations, Health Minister Jamie Muir and Finance Minister Neil LeBlanc have been able to secure an additional 10 per cent in operating costs to be shared across the district health authorities next year.

The Department of Health's budget last year was $1.819 billion, of which $900 million went to the district health authorities. Wage costs for the districts were $675 million, while other operating costs were $225 million. This year the government is adding $65 million to cover wage increases and $22.5 million to help cover pressures in operating costs.

The $22.5-million increase -- to be distributed among the nine district health authorities and the IWK -- reflects the priorities of the government and the priorities of Nova Scotians. The increased funding, which will be allocated based on current pressures and efficiencies, will help the districts manage their operating budgets. Together with the $65 million already set aside to cover the wage settlements negotiated last year for nurses and other health-care workers, the province's funding for health authority activities has increased by $88 million.

"Nova Scotians have told us that protecting health care is their number-one priority and we're responding with additional funding," said Mr. Muir. "Even with the increase we're announcing today, the districts will have to manage as efficiently as possible."

The health minister informed the district health authority board chairs and CEOs of the additional funding at a meeting this morning in Halifax.

Every effort will be made to allocate the additional funding fairly and based on efficiencies within each district. This means that districts who operate most efficiently will get more money than others.

Finance Minister Neil LeBlanc said that the rate of growth in health care costs must be managed. However, holding the districts to no increase is unrealistic given their challenge of managing escalating operating costs as noted in recent business plan submissions. District health authorities' responsibilities include all hospitals in Nova Scotia.

"Allocating extra funding to the districts is no easy feat when we have other areas facing serious funding shortfalls to help put this province on a solid financial ground for the first time in 40 years," said Mr. LeBlanc. "We want to protect health as much as possible but the additional money will mean more pressure on other areas."

Mr. Muir continued to explain that he recognizes that the increased amount in funding is still not what the districts have requested.

"Even with the additional funding, there will be changes in the delivery of programs and services," he said. "We are fortunate to have highly skilled people working in the districts who I know are able to operate within their means. This is a must if we are to finally achieve a health system that is sustainable at a cost the province can afford."

During his meeting with the districts, the minister noted that there must be an increased focus on achieving efficiencies within the system this year, developing an equitable funding formula, managing to budget and making decisions based on the best clinical evidence available.

Nova Scotia is divided into nine district health authorities. They are governed by a volunteer board of directors of which two thirds are appointed from nominees put forward by community health boards.