Prairie North Health Region's balanced operating budget, approved by the board last week, will count on finding $1.6 million in cost saving strategies.
Finding efficiencies by reducing telephone, travel, printing, electrical, utility and supply costs should result in $1.3 million in savings, indicates a budget highlight document issued by the region.
Another $1 million in savings by reducing sick time, overtime and workplace injury costs is highlights, as well as $300,000 in savings by sharing services with others.
of Prairie North Regional Health Authority is announcing that sustaining services, retaining jobs, improving efficiency and enhancing quality and safety are the focus of the 2010-11 operating and capital budgets.
Board members have approved a balanced operating budget of over $223 million for the 2010-11 fiscal year. Board members also approved $4.0 million in capital equipment and information technology purchases and $6.6 million in capital facility improvements.
Prairie North's balanced operating budget is predicated on finding and reducing waste and inefficiency while protecting services and programs for patients, residents and clients, and maintaining jobs and security for employees.
"We will do this through $1.3 million in efficiency savings in areas such as reduced telephone costs through voice over internet protocol (VOIP) implementation; reduced electrical consumption with implementation of virtual desktops; utility cost savings through energy retrofits at our regional hospitals; print management savings; and reduced vehicle and travel expenses through video conferencing and car pooling," explained Prairie North Health Region CEO David Fan.
"We must also lower sick time, overtime, and workplace injury costs by $1 million," said Fan.
The region is implementing a comprehensive attendance management strategy to address these issues.
"But," said Fan, "we cannot be successful without the focused effort of our entire workforce.
"If we do not succeed in reducing sick time, overtime, and Worker's Compensation Board costs and in finding efficiencies and decreasing waste, the end result will affect services and jobs,"
Fan stated.
"Prairie North will also maintain a strong focus on Lean and Releasing Time to Care initiatives that improve the quality, safety and effectiveness of all that we do. These strategies and projects are about ensuring that whatever we do in health care adds value for the patients, residents, clients and customers we serve - putting our patients/customers first," Fan added.
PNHR also expects to save $300,000 this year through shared service initiatives including joint purchasing for supplies and insurance, and partnership with Prince Albert Parkland Health Region for Information Technology services.
Salaries and benefits for the region's approximately 3,100 employees, plus medical remuneration and benefits account for 78 per cent of Prairie North's 2010-11 budget. All other expenses including supplies, food, drugs, utilities, repairs and maintenance account for the remaining 22 per cent of costs.
Overall, 38.7 per cent of PNHR's 2010-11 budget will be spent on acute care/hospital and emergency medical (ambulance) services. Another 21.9 per cent is budgeted for supportive care (long-term care and integrated facilities). Community-based services including primary health care, population/public health, home care, mental health, addictions, and health centres account for 19.6 per cent of expenditures.
Saskatchewan Hospital accounts for 9.8 per cent of expenditures. All other services make up the remaining 10 per cent of the budget.
Prairie North's major capital projects for 2010-11 are energy efficiency and fire safety upgrades at Battlefords Union Hospital ($2.4 million) and expansion and redevelopment of the Emergency Department and Admitting area at Lloydminster Hospital ($2.2 million). The Medical Imaging department at Lloydminster Hospital is also being redeveloped to accommodate introduction of mammography service. The Battlefords Union Hospital project begins next month, while the Lloydminster Hospital project begins this fall.
A variety of other capital upgrading and maintenance projects and capital equipment purchases are planned for most PNHR facilities and sites to ensure that patient and staff safety and infrastructure requirements are being met.
Prairie North also continues to work toward replacement of Northland Pioneers Lodge in Meadow Lake and is working with Alberta Health Services to construct a new 60-bed long-term care facility on the Alberta side of Lloydminster to replace the oldest wing of Dr. Cooke Extended Care Centre.
"Presenting a balanced budget during this time of fiscal constraint in Saskatchewan's health care system is a significant accomplishment," said PNRHA Chairperson Bonnie O'Grady. "We will need the commitment of everyone in the organization to achieve our year-end financial goal. I am confident our leaders, employees, physicians and all partners are up to the challenge," O'Grady added.
Prairie North's budget plans will now be forwarded to the Minister of Health for review and formal approval.
