Health News For South West
Tuesday, March 31, 2015
London Health Sciences Centre
LHSC Announces Budget Strategies for Fiscal 2015/2016
Today, London Health Sciences Centre (LHSC) announced its budget plans for fiscal 2015/2016. For the fourth consecutive year, funding levels for LHSC will not be sufficient to offset net inflationary pressures meaning that $26 million in savings is required from the organization’s $1.1 billion budget.
Many of the savings strategies identified, including supply cost savings strategies, will not have an impact on staff levels. However, with about 80 per cent of the organization’s costs allocated to people, it is expected that a reduction in staff hours worked equivalent to 97 full-time positions will be necessary to achieve the savings needed.
This does not reflect actual job positions being reduced, but rather an aggregate of reduced hours of work across many areas of the hospital where efficiencies can be realized while preserving quality and safety. Similar to the past three years, it is expected that any workforce impacts will be absorbed through attrition and retirements and involuntary layoffs will be avoided.
Many of the reduced hours of work will come from non-clinical areas and, for those in clinical areas, the majority of reduced time worked will come from a reduction of overtime hours as a result of improved staffing models and reduced occupancy.
At this time, preliminary savings strategies developed are expected to reduce working hours equivalent to 50 full-time positions including five leadership, five nursing and 40 support and service positions. Further savings strategies will be developed throughout the year.
“We are committed to meeting our fiscal challenges in a manner that will put our hospital on a sustainable path. Our top strategic objective is to achieve a 95 per cent average occupancy level at LHSC while maintaining or improving quality and safety,” says Murray Glendining, President and CEO, LHSC. “Achieving this objective will result in a better patient, staff and physician experience and will go a long way towards the savings needed this year and beyond.”
Media Contact:
Marek Kubow
Corporate Communications and Public Relations
London Health Sciences Centre
519-685-8500 ext 75155