2016-17 Budget

MAHC finished the 2015/16 fiscal year with an operating deficit of $1.6 million.  In 2016/17, the Ministry of Health and Long-Term Care increased the funding available for the hospital sector for the first time since the introduction of Health System Funding Reform, and MAHC received new funding of $545,000 through the Ontario budget.  However, increases in operating expenses (labour, drugs, etc.) on top of the 2015/16 deficit increased the budget deficit to $3.4 million in 2016/17, even with the new funding.

Recognizing the pressures on hospitals and that the new funding formula was causing hardship in the hospital sector, the Ministry provided additional funding to hospitals in December 2016.  MAHC received an additional $1.075 million in annual funding as a result of this adjustment.  While it helped reduce the operating deficit, it was not enough to balance operations and MAHC is still expecting an operating deficit of $2.3 million in 2016/17.

MAHC is unable to achieve a balanced budget without a significant revenue increase, or substantial reductions in services.  MAHC is working with the North Simcoe Muskoka LHIN, and the Ministry to find a resolution to the funding issue, as the Muskoka and Area Health System Transformation (MAHST) Council has only begun to examine health services in Muskoka, and needs time and stability in the hospital operations to complete this important work.

In March 2017, the Ministry of Health and Long-Term Care, through the North Simcoe Muskoka Local Health Integration Network provided MAHC with $2.3 million in one-time hospital funding for fiscal year ending March 31, 2017.  For more information, please review our media release.