For Immediate Release
January 18, 2005

McGUINTY GOVERNMENT ANNOUNCES FUND TO HELP ONTARIO HOSPITALS IMPROVE EFFICIENCY

The McGuinty government is investing $3,356,400 to help Kingston General Hospital ($3,251,600) and Kingston Providence Continuing Care Centre ($105,800) improve operations and reward efficiency, John Gerretsen, MPP for Kingston and the Islands, announced today on behalf of Health and Long-Term Care Minister George Smitherman.

"We know that hospitals are being asked to do a lot of hard work and make tough decisions as a result of our government's Balanced Budget Process," Gerretsen said. "We're want to reward those that have met these challenges head on, and help them with the changes they are making."

The funding is part of an overall $200 million one-time transition fund announced yesterday at the end of the first phase of an 18-month process to balance hospital budgets. The process has so far seen 76 hospitals come into balance. Hospitals have identified $174 million in savings in 2004/2005 and there will be hundreds of millions more in savings in 2005/2006.

The $200 million one-time transition fund includes:

• $91 million that all hospitals can apply for to cover severance and other labour adjustment costs
• $65 million to reward hospitals who have deficits but are moving in the right direction
• $5 million to reward balanced hospitals, including the most efficient "pacesetter" hospitals
• $20 million bridge funding to assist hospitals that need significant assistance to bring their budgets under control
• $19 million for small rural hospitals that have small operating bases and difficulty integrating services with other providers because of their isolation