Financials

Financial background

In 2025/26, London Health Sciences Centre (LHSC) continued to take important steps toward returning to a balanced budget. While hospital operating costs continued to rise due to inflation, broader health system pressures, and growing demand for services, the operational controls and financial management practices implemented over the past two years helped reduce the impact of these pressures on the organization. 

As one of Canada’s largest academic hospitals, LHSC operates a health-care system with an annual budget exceeding $1.8 billion and serves patients from across Southwestern Ontario. While LHSC continues to face a structural operating deficit, the organization is making measurable progress. In 2025/26, LHSC improved its operating position by $40.7 million compared to the previous year. This improvement was driven by stronger financial controls, operational efficiencies, disciplined workforce planning, improved financial performance in funded clinical programs, and enhanced oversight of organizational spending and resources.

LHSC also received $150 million in one-time support from the Ministry of Health and Ontario Health to address in-year financial and operating pressures. This funding allowed the hospital to conclude the fiscal year with a surplus of $36.1 million. Without this one-time support, LHSC would have reported an operating deficit of $113.9 million. 

The progress achieved this year is particularly noteworthy given the significant organizational renewal work occurring simultaneously. As outlined in the Supervisor’s Interim Report, LHSC has been undertaking substantial governance, operational, financial, and cultural reforms while continuing to deliver care, advance research, and educate future health professionals. Throughout this period, thousands of LHSC team members remained focused on what matters most: providing safe, compassionate, high-quality care to patients and families. Their professionalism, dedication, and resilience have been instrumental in maintaining services while helping position LHSC for a stronger future. 

While important progress has been made, significant work remains. LHSC will continue to address its structural operating deficit through ongoing operational improvements, strengthened accountability, and prudent financial management. We expect our financial position to continue improving over time, provided external pressures such as inflation, broader health system pressures, funding levels, and system demand remain manageable. 

We will continue working closely with the Ministry of Health, Ontario Health, and our partners to stabilize operations, strengthen governance, and support the long-term sustainability of care delivery across the region. 

Independent auditors’ report on the summary financial statements

To the Supervisor of
London Health Sciences Centre

Opinion

The summary financial statements, which comprise the summary statement of financial position as at March 31, 2026, and the summary statement of operations and summary statement of cash flows for the year then ended, and related notes, are derived from the complete audited financial statements of London Health Sciences Centre for the year ended March 31, 2026.

In our opinion, the accompanying summary financial statements are a fair summary of the audited financial statements, in accordance with the basis of presentation note.

Summary financial statements

The summary financial statements do not contain all the disclosures required by Canadian public sector accounting standards. Reading the summary financial statements and the auditor’s report thereon, therefore, is not a substitute for reading the audited financial statements and the auditor’s report thereon.

The audited financial statements and our report thereon

We expressed an unmodified audit opinion on the audited financial statements in our report dated June 5, 2026. The audited financial statements and the summary financial statements do not reflect the effects of events that occurred subsequent to the date of our report on the audited financial statements.

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 whether the summary financial statements are a fair summary of the audited financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810, Engagements to Report on Summary Financial Statements.

(signed) Ernst & Young LLP
Chartered Professional Accountants, Licensed Public Accountants
London, Canada, June 12, 2026

Management’s Summary Financial Results – March 31, 2026

Basis of Presentation

The information contained in the summary financial statements is in agreement with the related information in the complete audited financial statements. The summary financial statements contain major subtotals and totals from the complete audited financial statements. The complete audited financial statements can be found on the LHSC website.

SUMMARY STATEMENT OF OPERATIONS

Year ended	March 31, 2026	March 31, 2025
	(000's)	(000's)
REVENUE
Ministry of Health and Ontario Health	1,540,661	1,456,516
Other	284,394	267,418
	1,825,055	1,723,934
EXPENSES
Salaries and benefits	1,215,586	1,193,100
Other	723,339	685,423
	1,938,925	1,878,523
Deficit before undernoted item	(113,870)	(154,589)
MOH and OH one-time revenue	150,000	100,000
Surplus/(Deficit)	36,130	(54,589)

SUMMARY STATEMENT OF CASH FLOWS

Year ended	March 31, 2026	March 31, 2025
	(000's)	(000's)
CASH PROVIDED BY (USED IN):
Operating Activities	117,007	(14,070)
Financing Activities	8,055	38,420
Investing Activities	(1,501)	784
Capital Activities	(34,235)	(80,034)
Net increase/(decrease) in cash and cash equivalents	89,326	(54,900)
Cash and cash equivalents, beginning of year	102,690	157,590
Cash and cash equivalents, end of year	192,016	102,690

SUMMARY STATEMENT OF FINANCIAL POSITION

As at	March 31, 2026	March 31, 2025
	(000's)	(000's)
ASSETS
Current assets	347,227	254,336
Restricted cash, investments, and interest rate swaps	18,576	17,401
Capital assets, net	925,759	962,524
	1,291,562	1,234,261
LIABILITIES, DEFERRED CONTRIBUTIONS, NET ASSETS AND REMEASUREMENT LOSSES
Current liabilities	404,336	370,356
Long-term liabilities and deferred contributions	766,169	782,559
Internally restricted net assets	30,128	19,683
Unrestricted net assets	91,416	65,731
Accumulated remeasurement gains	(487)	(4,068)
	1,291,562	1,234,261