How we measure our financial performance
Revenue sources for 2010-11
The NHS received a base funding increase of 1.3% for fiscal 2011 to help offset inflationary cost pressures for salaries and benefits, patient care supplies and services and general operating expenses.
Approximately 83% in base and one-time funding was received from the Ministry of Health and Long-Term Care and the Hamilton Niagara Haldimand Brant (HNHB) Local Health Integration Network (LHIN) during the fiscal year.
Average emergency visit: $243
Eighty per cent of expenses are related to direct patient care like nursing, pharmacy, diagnostic imaging, laboratory and therapies. An additional 10% is related to support services like housekeeping, food and maintenance. The remaining 10% is for administrative costs.
Expense breakdown for 2010-11
The fiscal 2011 budget incorporated a total of $5 million of revenue generating and cost saving initiatives from the Hospital Improvement Plan and annual benchmarking review.
Approximately 68% of total expenses are related to salaries, benefits and medical staff remuneration. Inflationary cost pressures for the fiscal year amounted to approximately $8 million, with $6 million attributed to collective bargaining economic increases.
Average inpatient cost per day: $1,077
Approximately 78% of expenses are related to direct patient care like nursing, pharmacy, diagnostic imaging, laboratory and therapies.
An additional 12% is related to support services like housekeeping, food and maintenance. The remaining 10% is for administrative costs.
Administrative includes Administration, Human Resources, Finance, Material Management, Information & Communication Services
Support Services includes Housekeeping, Food, Maintenance, Biomedical, Registration, Health Records, Education Services
Investments in capital assets
In 2010-11, the hospital invested $14.7 million in equipment and building infrastructure upgrades as follows: New Hospital Complex $3.0 million; Energy Retrofit Initiative $3.4 million; Building $3.5 million; Equipment $3.7 million; Information Technology $1.1 million.
The majority of capital spending is financed through the provincial and federal governments and local foundations and auxiliaries. The NHS relies on donations from foundations and auxiliaries to fund necessary new and replacement medical equipment. Annually, the NHS’s capital needs exceed funding by approximately $8 million.
Hospital Accountability Agreement
The NHS has signed the Hospital Service Accountability Agreement with the HNHB LHIN for the 2011-12 fiscal year. This agreement sets out the roles and responsibilities of both parties with respect to funding, performance and service. Together, NHS and the LHIN will monitor progress under this agreement, posted on the NHS website.
Hospital Improvement Plan (HIP)
The HIP is a framework for the NHS to enhance quality of hospital care across Niagara while at the same time balance financial pressures, the needs of Niagara’s aging population, and the challenges of the ongoing shortage of doctors, nurses and other health professionals. The plan was endorsed by the LHIN in December 2008.
We continue to rebuild our financial health, as has been our priority over the last number of years. The HIP includes more than $28 million of savings over five years through the creation of centres of excellence, improved quality and efficiency initiatives, and by working collaboratively with the HNHB LHIN and other community agencies to ensure our patients are cared for in the most appropriate setting.
Approximately $20 million in savings have been achieved since the 2008-09 fiscal year.
