Alz- The Terrace Standard, Wednesday, September 25, 2002 Health authority plans for surplus in doubt THE NORTHERN Health Authorily ran a deficit of $1.3 million, or one per cent, on spending of $125 million from the start of its fiscal year on April | to the middle of July. “We had been forecasting a surplus of $4.5 million this year and a deficit of $4.5 million next year leading to a balanced budget in 2003/04,” said authority chair Harry Gairns of plans for this fiscal-year._ But cost pressures, the challenge of merging lots cf smaller health authorities | into one large one and dealing with the historical problem of some of those au- thorities constantly running deficits have complicated matters, Gairns continued, “Ate we proceeding too slow [to cut costs] or are we too optimistic? I think it is a little of both,” said Gairns. “We had at least expected a break even. If you were to keep your house [budget] within one per cent you'd be doing OK, but that doesn’t apply here.” Gairns said that faster action is needed to avoid a lJarger deficit problem next year. That's when annual wage increases to nurses and other health care workers kick in and they must be absorbed without a budget increase from the province. “We'll be at zero and they've told us not to expect anything else,” said Gairns of discussions with provincial officials. Along with the call for cancerted cost cutting action, the authority has decided not to go outside for management help. Back in the early spring it did-hire So- dexho, an international health care ser- vices provider, at a cost of $81,836 to provide it with an idea of cost cutting possibilities in laundry, cleaning and kit- chen areas... That set the stage to look for bids, in- cluding one from Sodexho, on hiring Management support to accomplish those cost cutting goals. Health. care unions criticized the move, saying it was.one step away from contracting out the laundry, kitchen and cleaning services themselves. But Gairns said the authority believes its OWN managers can achieve cost cut- ting with its own employees. “We've asked them to keep working on it and ta monitor the results. We have said we're going to have to move a Jot quicker,” said Gairns. He did note that centralization and the combining of services is a lot easier to do in more populated areas where facilities are closer together. Two of a possible three companies did submit bids to provide management sup- port. Health body posts deficit DESPITE A cash infusion from the pro- vincial government, the Northern Health Authorily ran a deficit in its financial year ending March 31, says its chair. Harry Gairns said the authority had hoped to at least break even thanks ta the $6 million boost but instead ran just over $5 million in the red. “Tt was partly a surprise,” said Gairns of auditor statements indicating revenues of $384.7 million but expenses of $389.8 million. “Previously, around February, we had asked every part of the health authority to forecast where they would be and theor- elically we thought we would come out even.” But costs of bringing the various smal- fer health authorities together last year to form the Northern Health Authority proved more expensive than first thought, Gairns continued. One of those cost areas involved tuck- ing away $3 million for severance and other payouts tied to the authority’s trim- ming of its executive official level and ather anticipated job reductions. “A couple of places had us inheriting deficits,” Gairns said of the process of absorbing the smaller heaith authorities, “One af them, the Northwest Com- munity Health Services Society [formerly the Skeena Health Unit] told us they were balanced but were substantially in a defi- cit,” he said. All this now means there’s added pres- sure on the authority to control spending yet make changes at the same time to improve health care. The authority’s original plans for a sur- plus this year and a deficit next year were lied to its gradual approach to make heaith care changes, “We took a different way to save costs. Other authorities closed hospitals and so on in calculating to run a deficit this year and a surplus next year,” said Gairns. He did say the authority is behind in some areas in its attempt to contain costs. “The implementation teams we set up are still active. We have found some things are not possible but other things are going to work out better,” said Gairns, Even though the Northern Health Au- thority’ was ‘created’ only’ last December, ‘ its year end financial statements of March 31 were assembled by gathering together all of the books of the older and smaller health authorities. find out how Let Us Show You How To Surf New Customers STANDARD Call our advertising department now to 638-7283 you want a copy of? The Terrace Standard along with Northern Photo Ltd. now provides this service. Come into our office located at 3210 Clinton Street and indicate the photo of your choice and size. 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Press COUNCIL 201-1290 Broad Street, Victoria, B.C. VOW 2A5 Ph. 250-384-3344 Fax: 250-384-3346 E-mAl: council@bepresscauncil.org Wes: bepresscouncil.org Sa, = (pee oa Terrace a ~ Downtown tay Lions Club The Terrace Downtown Lions Club would like to thank the following Individuals and firms for their support towards loggers sports, with their donations. Without your support, the loggers sports would not happen. Dr. Thomas Naay Dr, Greenwood Ken’ Marine All West Trading Ltd. Alm-Wood Contracting McEwan GM Independent Industrial Northern Fetretac West Fraser Peterbilt Bear Creek Contracting Western Seaboard Northwest Fuels Rosle’s Delivery Off Road Deliveries Kitelse. Contractirig— Lindsay's Cartage & Storage Willlams Moving Cedarlana Tire Excel Traneportation McAlpine & Co. Terrace Bowling Lanes Inland Kenworth VG. Hoffman Logging Neid Enterprises Houlden Logging Main Leaging . Terrace Chrysler “SIN, ee eee EE The Baw Clings + Gina We would also like to thank Mr. Andy Lambert, Spee-Dee Printers, Sight & Sound, Mr. Vie Devost, West Fraser, Re-Lynn Trucking, Gerry Lambert, Terrace Builders and the Terrace Fire Departinent for helping set up. Dr. Harry Murphy Farwest Fuels AL-C's Glass Ltd. All West Glass Terrace Bandstra Transportation Straws Machine Twin River Electric Johnny's Welding Terrace Truck & Diesel Rudon Enterprises Lta. Aqua Clear Bottlers West Point Rentals James Bradley, Chairpereon Logger Sports Committee The Terrace Downtown Lions A sensor measures and automatically adjusts the volume accordingly A‘com sound 4731 Laxelle Ave 4 TERRACE HEARING CLINIC seas The Hearing Professionals Terrace 635-HEAR (635-4327) HARBOUR HEARING CLINIC 2nd floor Rupert Square Mall 624-4120 REGULAR VISITS TO SMITHERS 1-800-811-1533