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STATEMENT - CHEO’s 2015-16 Budget
March 11, 2015 - The Children’s Hospital of Eastern Ontario (CHEO)’s 2015/2016 budget plan is addressing an expected funding gap of $6.7 million of its $243 million budget.
The Government of Ontario has an ambitious plan to eliminate the provincial deficit and to change how health care is funded and organized. This means that CHEO will receive no additional funding for negotiated salary increases (up to 1.4% for unionized employees) and less base funding overall, despite rising costs.
CHEO’s core funding has been frozen or reduced every year since 2012. CHEO has managed these pressures by reducing administrative overhead. We are, and will continue to be, lower in administrative overhead than other hospitals in the region.
CHEO has developed a comprehensive budget plan for the 2015/2016 fiscal year which delivers a balanced budget, as required by law of Ontario hospitals.
After careful planning and analysis with its medical and operational leaders, the hospital will be implementing over 100 initiatives, over half of which are in non-clinical areas. Despite reductions in administration and increased revenue generating activities, the hospital anticipates some staffing reductions. Of its 1,750 positions, the hospital expects a reduction of 40-50 positions (approximately 2-3%). The hospital expects that most of these reductions will be accomplished by attrition, voluntary retirement and reassignment.
“The CHEO team remains committed to meeting this challenge together and continuing to deliver the highest quality of patient care to its patients and their families,” says CHEO CEO, Alex Munter.
CHEO consistently allocates more of its resources to patient care and services, and less to administration, than other local hospitals and will continue to do so. As an academic health science center, CHEO is deeply committed to providing exceptional patient care and, despite these changes, will continue to focus on our mission to help kids and families be their healthiest.
In addition to its clinical and academic mandate, CHEO is proud to have been recognized as a top hospital in Ontario for patient, staff and physician satisfaction in the past several years, and proud of the commitment, caring and expertise of our team. We will continue to do everything possible to make CHEO a great workplace and to support our staff through this transition.
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For more information (media), please contact:
Cara Salci
CHEO Communications
Cell: 613-854-0871

Eva Schacherl
Communications Manager and Strategist
Cell: 613-769-5553

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