I am pleased to report on the financial results of London Health Sciences Centre (LHSC) for the fiscal year ended March 31, 2015.
The health care funding environment continued to be extremely challenging this fiscal year as the organization dealt with an overall funding reduction for the third straight consecutive year. Strategically, LHSC directed its resources towards transforming the patient care experience while managing its resources effectively. LHSC ended the year with a small operating surplus of $4.3M mostly due to one-time year end funding. We continued our strong financial stewardship in light of consecutive year-over-year funding reductions. Fundamentally, LHSC has taken steps to ensure the financial sustainability of the organization and create an environment that can adapt to rapidly changing demographics and demands. This included a revised operating and capital budgeting strategy to address patient care needs and renew our clinical priorities.
LHSC continues to navigate the complexities of Health System Funding Reform while balancing our budget for nine consecutive years. Our strategy to focus our attention on unit cost reductions is reinforced by the Ministry of Health and Long-Term Care data that suggests we are becoming a highly efficient hospital.
This fiscal year we completed almost a decade of building projects at all of our sites. The demolition of South Street and capital redevelopment of both University and Victoria hospitals was a significant achievement. The next chapter in our story will increasingly turn our attention to system-wide efficiencies with regional hospitals and other health care agencies, doing more with less and transforming how we do business.
On behalf of the Finance & Audit Committee, I would like to thank the staff, physicians and management for their dedication to our patients who we serve. As I finish my term as Chair of the Finance and Audit Committee, I also want to sincerely thank the volunteer members of the Committee for their diligent commitment to the work of the Committee, our patients and LHSC during the past year.Michelle T. Faysal
The accompanying summary financial statements, which comprise the summary statement of financial position as at March 31, 2015, and the summary statements of operations and cash flows for the year then ended, and related basis of presentation note, are derived from the audited financial statements of London Health Sciences Centre for the year ended March 31, 2015. We expressed an unmodified audit opinion on those financial statements in our auditors’ report dated May 27, 2015.
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 is responsible for the preparation of a summary of the audited financial statements on the basis described in the basis of presentation note.
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.”
In our opinion, the summary financial statements derived from the audited financial statements of London Health Sciences Centre for the year ended March 31, 2015 are a fair summary of those financial statements on the basis described in the basis of presentation note.