finacial report click here for condensed financial statements

Message from the Treasurer of the Board of Directors

I am pleased to report on the financial results of London Health Sciences Centre (LHSC) for the fiscal year ended March 31, 2014.

It was a very challenging year with regards to clinical volumes and a changing health-care funding landscape. The hospital responded positively to these changes and ended the year in a healthy financial position, continuing its strong financial stewardship in light of consecutive year-over-year funding reductions. Senior leaders refocused their attention on development of an operating and capital budget that will sustain the organization as we continue to operate under government-directed cost-containment measures in the years ahead. These strategies will ensure we have the resources to respond to a rapidly changing demographic shift in our patient populations and solidify our standing as a leader in academic health science hospitals.

Our budget processes continue to focus on further cost reductions and efficiencies while maintaining quality of care. During the year, the Ministry of Health and Long-Term Care continued its introduction of quality based procedures which will allocate funding for specific procedures based on a “price x volume + quality” approach. The hospital continues to adapt to the new Health System Funding Reform which is driven by funding policy and models built to support evidence-based best practices related to the efficient delivery of patient care.

At time of writing, the Local Health Integration Network has not officially announced funding adjustments to Ontario hospitals for the fiscal year ahead ending March 31, 2015. We have however, forecast a fourth straight year of funding decreases and will respond accordingly once announcements are made by the province. As we enter into the final phases of our building redevelopment, we will increasingly turn our attention to system-wide efficiencies with regional hospitals and other health care agencies.

On behalf of the Finance & Audit Committee, I would like to thank the staff, physicians and management who collectively make LHSC the leading-edge organization that it is. I also want to acknowledge and sincerely thank the volunteer members of the Finance & Audit Committee for their tireless commitment to the work of the committee and the hospital during the past year.

Michelle T. Faysal
Treasurer, Board of Directors
London Health Sciences Centre

Independent Auditors’ Report on the Summary
Financial Statements


To the Board of Directors of London Health Sciences Centre

The accompanying summary financial statements, which comprise the summary statement of financial position as at March 31, 2014, and the summary statements of operations and cash flows for the year then ended, are derived from the audited financial statements of London Health Sciences Centre for the year ended March 31, 2014. We expressed an unmodified audit opinion on those financial statements in our auditors’ report dated May 28, 2014.

The summary financial statements do not contain all the disclosures required by Canadian public sector accounting standards. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of London Health Sciences Centre.

Management’s responsibility for the summary financial statements

Management is responsible for the preparation of a summary of the audited financial statements on the basis described in the Basis of Presentation note.

Auditors’ responsibility

Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard 810, "Engagements to Report on Summary Financial Statements."

Opinion

In our opinion, the summary financial statements derived from the audited financial statements of London Health Sciences Centre for the year ended March 31, 2014 are consistent, in all material respects, with those financial statements on the basis described in the Basis of Presentation note.

(signed) Ernst & Young LLP

Chartered Accountants
Licensed Public Accountants
London, Canada
May 28, 2014.