Auditors Report on Condensed Financial Statements

The accompanying summarized statements of financial position, operations, and cash flows are derived from the complete financial statements of London Health Sciences Centre as at March 31, 2010 and for the year then ended on which we expressed an opinion without reservation in our report dated May 12, 2010. The fair summarization of the complete financial statements is the responsibility of management. Our responsibility, in accordance with the applicable Assurance Guideline of the Canadian Institute of Chartered Accountants, is to report on the summarized financial statements.

In our opinion, the accompanying financial statements fairly summarize, in all material respects, the related complete financial statements in accordance with the criteria described in the Guideline referred to above.

These summarized financial statements do not contain all the disclosures required by Canadian Generally Accepted Accounting Principles. Readers are cautioned that these statements may not be appropriate for their purposes. For more information on LHSC’s financial position, results of operations and cash flows, reference should be made to the related completed financial statements.

Ernst & Young LLP
Chartered Accountants
Licensed Public Accountants
London, Canada
May 12, 2010

A Message from the Chair of the Finance and Audit Committee

Part of the mandate of the Finance and Audit Committee, of the London Health Sciences Centre’s (LHSC) Board of Directors is to monitor the hospital’s compliance with certain service volumes as set out in the Hospital Services Accountability Agreement (H-SAA), negotiated with the South West Local Health Integration Network (SW LHIN). LHSC’s inpatient activity and emergency visits remained consistent over the past year, with ambulatory visits slightly ahead of planned volumes. We also met the additional required service levels for our H-SAA.

Again this year, LHSC realized a surplus from its operations and maintained its working capital deficit at a level consistent with the previous year. These results will allow us to make investments that are needed to continue our focus on excellence in patient care in the coming year.

A significant issue facing LHSC continues to be how to fund growing capital replacement needs. LHSC’s targeted annual reinvestment is $43 million; but our 2009/2010 capital spending was capped at $25.2 million to offset operating budget pressures.

Although the Ministry of Health and Long-Term Care has announced a global funding increase for Ontario hospitals of 1.5% for the 2010/2011 year, LHSC’s specific funding level will not be known until the summer. Given the lasting effects of the recession on government revenues, we expect to be faced with significant financial constraints not only for 2010/2011, but well into the future.

I wish to thank the volunteer members of the Finance and Audit Committee for their support and leadership during the past year. I also want to thank the staff, physicians, and management of LHSC for their ongoing commitment to provide the best care possible to our patients and their families.

Gerry Wheaton
Chair, Finance and Audit Committee
Board of Directors, London Health Sciences Centre