Health Care on the Edge
A Plea for Compassion
presented by
The Thunder Bay Health Coalition
Thunder Bay Health Coalition
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Thunder Bay Health Coalition
February 5, 2004
A chapter of the Ontario Health Coalition
Members are citizens concerned about health
care, many of whom represent local
organizations
We support public health care - Government
funded, universally accessible care, delivered
without a profit motive
McGuinty Praises Nurses' Fight for "Strong
and Sustainable, Publicly Funded and
Delivered Health Care System."
TORONTO, Sept. 20 - Ontario needs a change to a
government that respects medicare and the people who
deliver it, says Ontario Liberal Leader Dalton McGuinty.
"It's time to invest in greater resources, ensure increased
accountability, and stop the creeping privatization of
health care," McGuinty said.
Thunder Bay Health Coalition
February 5, 2004
Post-Election: The “5.6 Billion”
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Why is it a surprise?
Liberals predicted a hidden deficit
Ultra-conservative Fraser Institute
says PCs running $4.5 billion deficit
TORONTO, Sept. 22 - The ultra-conservative
Fraser Institute - with senior fellows Mike Harris
and Preston Manning - today released a report
saying Ernie Eves' PCs are hiding a $4.5-billion
deficit and Ernie Eves' uncosted promises will
only make things worse.
Thunder Bay Health Coalition
February 5, 2004
The Liberal numbers
Liberal Plan was Tested
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Thunder Bay Health Coalition
February 5, 2004
TORONTO, Sept. 22 - Experts from across Canada have
pronounced the 2003 Ernie Eves budget is hiding a
massive deficit.
Our plan holds the line on taxes, ensures balanced
budgets, enhances essential public services and sets
aside $1 billion reserves every year. Ontario Liberals will
cancel Ernie Eves' $3.2 billion giveaway to Ontario's
largest corporations and $500 million handout to private
schools.
What the Liberals left out
“The direct fiscal impact of these two plans
on the 2006 Deficit is quite similar: $3.7
billion for the Conservatives and $4.0
billion for the Liberals.”
“Either fiscal plan will have to be
significantly revised to balance the
provincial budget this year and through
the next term in office.”
Thunder Bay Health Coalition
February 5, 2004
How big is the ‘structural’ deficit?
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Thunder Bay Health Coalition
February 5, 2004
Included in the $5.6 B are one time items
 Hydro One/OPG impact of 1.3B
 ‘Contingency’ of 0.6 B
 One Time SARS costs of 0.6 B
The Canadian Centre for Policy
Alternatives projects a deficit of 2.2
Billion in 2004/05 and a surplus of 300
Million in 2005/06 if the Liberals do not
launch their new initiatives
Which deficit to discuss?
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Thunder Bay Health Coalition
February 5, 2004
During the election the Liberal focus
was on a decade of cuts to social
programs
Since the election, what we hear
about is the financial deficit
So what should
we do about the
budget?
Why are health care costs so high?
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Thunder Bay Health Coalition
February 5, 2004
Demographics
P3 deals by any other name are still profit
making ventures for the investment groups,
at public expense
Private facilities, paid for by public money
draws funding and resources away from the
public system
Health expenditures now include profits for
corporations - Long Term Care and other
corporate service providers
Eves PCs must explain why they
signed private hospital deal
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Thunder Bay Health Coalition
February 5, 2004
OTTAWA, Sept. 28 - The Eves PCs must explain why - in
the final week of an election campaign - they signed a
deal for a private hospital. "I am astounded that Ernie
Eves would sign a deal for a private hospital in the last
week of an election campaign," said Liberal Candidate
Jim Watson. "He can't hide behind bureaucrats on this,
he needs to explain why he wants to saddle Ontario with
a two-tier approach that was rejected by Roy Romanow."
Watson also demanded the terms of the deal be made
public. "If Ernie Eves is so proud of this private hospital
deal, he should release all the details today," Watson
said. Watson said while Ottawa needs a new health care
facility, it should be publicly owned and operated, not a
private hospital.
Todays “rentals” -yesterdays P3
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Thunder Bay Health Coalition
February 5, 2004
The Liberal Minister of Health has continued
the PC back room negotiations to privatize
hospitals
Call it a lease payment, call it rent - whatever
you call it, it is a capital program with an
additional 10-15% fee for profits which
creates a false sense of health care costs
It is no surprise that health spending is
increasing so fast, the government is adding
in a profit margin for every private facility
PC: Pay-as-you-go health care
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Thunder Bay Health Coalition
February 5, 2004
KITCHENER-WATERLOO, ON, Sept. 9 - "Eves has opened
the door to creeping privatization. The people of
Kitchener-Waterloo know what's hidden behind Door
Number One in Eves Let's Make a Deal approach to
health care," said Kitchener Centre Liberal candidate
John Milloy.
An MRI technologist was recently hired away from
Windsor's Hotel-Dieu Grace Hospital to work at the
private pay-as-you-go KMH Cardiology and Diagnostic
clinic in Kitchener, which opened over the summer. The
technologist was lured away with a $15,000 bonus.
McGuinty Liberals have plan to
increase MRI and CT services
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Thunder Bay Health Coalition
February 5, 2004
TORONTO, Sept. 22 - A McGuinty Liberal government
would increase access to public MRI and CT services
across Ontario, and work with experts to set and meet
maximum needs-based waiting times for care.
"Ontario voters will choose between the Eves PCs giving
billions away to large corporations and private schools
or the McGuinty Liberal plan to put those hard earned tax
dollars to work in our hospitals, providing health care
services we desperately need," said Pupatello.
Long-Term Care
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Thunder Bay Health Coalition
February 5, 2004
A P3 paradigm in action
The government is now paying
private developers to build
facilities, complete with profit
margins
Service standards have been in
decline since private operations
have taken over
The Private Delivery Model
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Retirement REIT’s mandate is to provide the
best possible standard of accommodation, care
and services to our residents, and to treat them
with respect, dignity, and compassion. Our
business mission is to generate stable and
growing distributable income and maximize
unit value through the efficient management of
our senior care homes and related services,
and by growing the business through accretive
acquisitions and new developments, primarily
in Canada.
From: http://www.retirementresidencesreit.com/investment/index.asp (Emphasis ours)
Thunder Bay Health Coalition
February 5, 2004
Retirement REIT Performance
Long Term Care Operations
Canadian Operations - Three Months ended Sept 30
(Amounts in Thousands)
Revenue
Direct Operating
General and Admin
Gross Income
2003
109,632
2002
89,796
88,118
2,277
73,034
2,061
19,237
14,701
17.55%
16.37%
Interest expense
Deprec and Amort
6,612
4,466
5,069
3,032
Net Income
8,159
6,600
7.44%
Thunder Bay Health Coalition
February 5, 2004
7.35%
Extendicare Achieves 75% Increase in
Third Quarter Earnings
Third Quarter Operational Highlights:
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The Ontario and Alberta governments implemented long-term
care spending increases effective July 1 and August 1,
respectively. These combined funding changes improved the
Company's third quarter revenue from Canadian operations
by approximately $3.0 million and EBITDA by approximately
$1.5 million.
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The Company also benefited from the opening of new nursing
homes in Ontario, adding approximately $6.3 million of
revenue and EBITDA of $1.4 million to the quarter. Four
nursing homes were opened in 2003, with an additional one
scheduled to open in January.
November 6, 2003
Thunder Bay Health Coalition
February 5, 2004
What else costs more?
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Thunder Bay Health Coalition
February 5, 2004
Pharmaceuticals: Ontario’s drug costs have
increased by 130 % since 1995/96 while
pharmaceutical corporations top the Fortune 500
list in profits. We need controls on drug pricing.
De-listing Services: De-listing moves the cost
of health care services to the patient. Cuts to
substance abuse and mental health programs
also transfer costs to other agencies.
Home Care: The competitive model for home
care has completely destabilized a program
critical to help people maintain independence
and pushes the ill and disabled into more
expensive institutional care.
Responsible spending
isn’t about cutting service
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Thunder Bay Health Coalition
February 5, 2004
Tax revenues: MoF assumptions include an
11.5% growth in corporate profits for 2003, yet
corporate tax revenues are forecast to drop over
3% in 2003/04 from 2002/03
“Publicise” Services: Annual average operating
cost per bed in a long term care facility is over
$30,000. Removing a 7% profit could reduce that
by over $2,000 per bed.
Borrowing: An acceptable measure to protect
social programs
“Administrative savings”
=
“Steering, not rowing”
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TORONTO, Sept. 9 - Ernie Eves today claimed
that 'administrative savings' aren't cuts, which is
precisely the same argument the Harris-Eves PCs
made in the 1995 election - before they cut
everything from health care to water inspections.
Reporter: "I understand that you are planning on
seeing administrative efficiencies of $800
million this year, $700 million the next year, $750
million the year after and $850 million the year
after that. Health care and education account for
about 70 per cent of your total spending. Will any
of these cuts come in health care or education?”
Eves: "There are no cuts in this. These are
'administrative savings.'"
Thunder Bay Health Coalition
February 5, 2004
The Liberal Dilemma
Honour a promise to the Canadian
Taxpayers Federation by continuing a
decade of cuts to public services
OR
Honour a promise to the voters of
Ontario by renewing social programs
and public services
Thunder Bay Health Coalition
February 5, 2004
Our Bottom Line
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We are willing to pay our fair share
... we support fair taxes to rebuild social programs
We can't afford privatization
... it is an expensive hidden tax
Medicare's future is at stake
... We must reinvest in public healthcare
We voted for change and we meant it
...keep your promises
Thunder Bay Health Coalition
February 5, 2004
The March budget is your
opportunity to choose
(WHITBY, ON, Oct. 1)
Choose:
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Better schools and health care -- instead of massive
tax giveaways for large corporations and private
schools.
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More family doctors, nurses and hospital beds -instead of a failed approach that has made Ontario
tenth out of ten provinces in having enough family
doctors, nurses and hospital beds.
Thunder Bay Health Coalition
February 5, 2004