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.
Treasurer, Board of Directors
London Health Sciences Centre