Sault hospital on track to finish the year $20M in the red

Unless there is more funding from the province, the Sault Area Hospital is expected to finish the year with a budget deficit of more than $20 million.

The stark message was delivered this week by hospital CEO Ila Watson at a meeting of the hospital's board of directors.

Watson told the Sept. 23 meeting that last year, also SAH faced a huge deficit before funding for Bill 124 compensation adjustments were confirmed late in the year.

The last-minute funding meant the hospital actually posted a $2.1 million surplus.

"Had it not been for that funding, we would have had a deficit of about $7.5 million at the end of 2023-24," Watson said in her report to the board.

This year's budget, which maintained all existing services and anticipating increased demand in the emergency department, was approved by the board in the spring.

"Uncertainty about funding in the hospital sector remains high, and we are facing funding issues similar to other hospitals in the province," Watson said.

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Sault Area Hospital CEO Ila Watson delivered the budget deficit warning at a meeting of the hospital's board of directors Sept. 23 (File).

"Based on funding that has been confirmed to us by Ontario Health for 2024-25, we anticipate our operating plan will result in a deficit in excess of $20 million. The size of the deficit may change if additional funding is provided."

While things are looking bleak right now, Watson said Ontario Health "is gathering information from all hospitals about their forecasts for the year."

"We may receive direction requiring us to develop a recovery plan," she said.