Niagara Health System Moves To Find $13 Million In Cost Savings This Year

By Doug Draper 

Faced with what it describes as many of the same challenges other Ontario hospital systems are during a time of “economic downturn” in the province and no increase in funding for hospitals, the Niagara Health System is looking to find $13 million in savings this year.

  In an outline of facts and figures posted below and prepared for a Thursday, January 17 media briefing, Sue Matthews, the interim president and CEO for an NHS responsible for managing the operation of most of the hospital services in Niagara, Ontario, stressed that the savings will be found without making compromises to patient care. “We exist to provide the best possible patient care (and) we will continue to work creatively to minimize the impact of efficiency measures on those we are for and our staff,” reads the outline presented by Matthews.

 The outline also notes that the NHS has already taken steps to cut its administrative costs to an extent that its costs in that area already fall well below many other hospital systems in the province. Some of these reduced costs have been achieved, according to the outline, by eliminating some “support, managerial and executive positions” over the past years.

 The NHS also plans to carry out some of its cost savings by not filling some vacant staff positions throughout the system. Administrators in the system will also be working with unions to limit the number of layoffs which may have to be made it eliminating now-vacant positions isn’t enough to get staff costs down.

 Among other actions now underway, the NHS is in the process of increasing parking rates for staff and for all visitors to its hospital sites in Niagara. A list of the new rates is included in the outline below.

 Here is the outline presented by Matthews and Niagara At Large will continue to follow the status of this cost-cutting effort and will also continue to encourage you to share with us any input or concerns you have on this issue. You can offer your input in the comment area at the bottom of this post or email them to drapers@vaxxine.com.

 Hospital Efficiency Measures 2013

Our plan for financial sustainability & high-quality care

January 17, 2013

 Principles for the Budget Process

 • We exist to provide the best possible patient care

• Our people are our most important resource

• Our system must be financially sustainable, especially in

light of our economic downturn and a 0% increase in funding for hospitals, despite inflation

• In response, have identified potential savings of up to $ 13 million through a benchmarking process

• Ontario hospitals are engaged in similar processes

 Recent Actions to Achieve Efficiency

 • We are currently below the 25th percentile for administrative and support expenses – i.e. one of the most efficient hospitals in Ontario

• We have removed administrative support, managerial, and executive positions in the last year

• We engaged staff in a bright ideas initiative to help find savings – this project will continue

 Actions Underway

 • The following slides detail the actions underway

• We do not know the final number of individuals who will leave the organization, but we will try to minimize the impact

• We feel deeply empathetic to any and all who may be impacted by these changes

 Actions Underway – Initiative Savings

• Decentralize Nursing Scheduling Office $1.0M
• Centralized Food Services Delivery Model $0.5M
• Parking Revenue – increase staff and visitor rates $0.5M
• 6 week OR closure at three sites $0.5M
• OR Product Standardization $1.0M
• Mental Health Consolidation to St. Catharines $1.0M
• Lab efficiencies $0.5 M
• Administrative and Support reductions $1.0M
• Other cost saving initiatives $2.2M
• Clinical Efficiencies and Consolidations $ 1.8 M
• Total Initiatives $ 10 M

 Additional $ 3 million working with staff

 • We are challenging our staff to help us find $ 3 million, in addition to the $ 10 million saved through these initiatives

• Areas of focus will be:

Sick Time and Overtime – meeting the provincial benchmark

Infection Control – preventing outbreaks through hand hygiene, antibiotic stewardship, and cleaning

 Parking Changes and Rate Increased

• Parking will soon be gated at Niagara Falls, Niagara-On-The-Lake, Welland, and the new St. Catharines Site; Portand Fort to remain pay & display.

• New Parking Rates are as follows:

• · $2.00 per ½ hour
• · $4.00 per 1 hour
• · $8 maximum per 12 hours
• · $40.00 per 1 week (7 days)
• · $80.00 per month (31 days)
• · Staff – $22.00 bi-weekly

 Working with our Unions

• Our goal is to work with our Unions to minimize the number of actual layoffs

• For example, in 2009 we worked successfully with our unions; the result was less than 5 individuals were laid off

• To this end, our planning will include:

• o Cancelling some vacant positions (12 full time positions)
• o Reduce and redistribute hours for part-time staff
• o Reassign to other existing vacancies
• o Provide selected early retirement or voluntary exit options

 Vacancies Today at NHS

 • Today there are approximately 120 permanent vacancies at NHS – 50% are full time

• In Nursing, there are 66 permanent vacancies, 31 of which are full time; we do not anticipate any nurses will be laid off

• We will still have many vacancies after these initiatives

• We have not finalized our Budget for 2013/14

• In light of current economic conditions, we will facechallenges for the next 3-5 fiscal years

• We will continue to work creatively to minimize the impact of efficiency measures on those we care for and our staff.

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