$14 million closes the funding gap

“This additional $14 million in base funding helps us get to a point of financial stability.” says Angela Zangari, Chief Financial Officer

April 1 marks the first day of our hospital’s annual budget cycle. Beginning this year, Niagara Health will receive an additional $14 million from the Province of Ontario, bringing our annual budget to approximately $402 million.

The $14 million covers a funding shortfall which has existed since the NHS was formed 10 years ago. These monies were also provided to help support the ongoing implementation of our Hospital Improvement Plan (HIP).

Approximately 78% of the $402 million is spent on patient care, which includes nursing, medications, diagnostic imaging and laboratory tests. Thirteen per cent of the annual budget covers the cost of housekeeping, maintenance and patient food. The remaining nine per cent is used to pay for administrative services such as human resources, information technology and materials management.

“This additional $14 million in base funding helps us get to a point of financial stability,” says Chief Financial Officer Angela Zangari. “It closes the gap that we have been struggling with over recent years.”

This new increased level of funding will help to ensure the NHS has the resources it needs to serve residents across Niagara.

Key to the hospital’s financial stability is the continued implementation of the HIP, which outlines changes in the way patient care will be delivered in Niagara for the next four years.

Many factors continue to drive the need for change. These include an increase in chronic disease, a shortage of family doctors and other primary care providers, fewer and fewer nurses and health professionals, advances in technology, and changes in provincial funding formulas.

“Niagara has not been alone in this transition. Some would say we are ahead of the curve. We need to prepare today for population health needs 10 years from now, and this is what the HIP is enabling us to do,” says President and CEO Debbie Sevenpifer.

While the hospital foundations and auxiliaries working with the community do a tremendous job of fundraising to purchase equipment and fund construction, demands are many and fundraising alone does not keep up with steady needs.

“The new funding brings financial stability to the NHS and will allow us to increase our annual investment in patient care equipment and medical technology,” says Debbie. “We need to keep pace with the advances in patient care and prepare for this next decade.”  «