Haliburton Highlands Health Services (HHHS) is set to end the 2024-25 fiscal year in a positive financial position, with chief financial officer Ulvi Iskhagi-Bayat projecting a $3.2 million surplus by March
- Touting a significant turnaround from the $6.4 million deficit he had forecast last spring, Iskhagi-Bayat noted the positive standing was a result of a recent $9 million one-time provincial grant.
It marks the organization’s first balanced budget since before the COVID-19 pandemic.
“We were able to secure some additional funds… it’s still under embargo, so we cannot disclose the details,” he told the HHHS board Feb. 27. “It’s good news for us. The money helps our position significantly… and we still have another month to work with the ministry, to maybe get some more funding.”
Prior to the additional money coming in, Iskhagi-Bayat said HHHS was expecting year-end revenues of $35.7 million and expenses of $41.2 million.
The organization began the fiscal year with a $2.3 million deficit, which CEO Veronica Nelson, at last year’s annual
general meeting, said she hoped to eliminate within 12 months.
Addressing the board last week, Nelson said HHHS’ expenses were up marginally from last year – by just under $700,000. Staff salaries – including sick pay and overtime – saw the biggest increase, jumping from approximately $17.6 million in 2023-24 to just under $19.7 million this year.
She attributed that to successful recruitment, with 142 new staff added since June 2023, as well as new contracts
for Ontario Nursing Association and SEIU unionized members, who got a three per cent raise.
Agency staffing costs – largely for nurses, PSWs and physicians through Health Force Ontario – dropped to $2.3 million, an $800,000 reduction from the previous year and down $2.2 million from 2022-23. Nelson previously told The Highlander that, as of Dec. 31, 2024 HHHS had significantly reduced its dependence on agency workers,
with 1.82 per cent of shifts covered by outside bodies, compared to 11.5 per cent at peak use in June 2023.
Nelson said that shift was a big part of HHHS’ turnaround this year.
“That has saved us some significant money… we’ve also done a lot of advocacy and we’re very thankful to Ontario Health, the Ministry of Health, and the Ministry of Long-Term Care in supporting our journey to stabilize and right-size our budget,” Nelson said. “Every dollar we get goes towards frontline patient, resident or client care.”
She said more information on the $9 million received from the province will be released later this month. The bulk of the surplus will be used to pay-off HHHS’ working capital debt, which stands at $6.5 million.
Board chair Irene Odell said she was very happy to see the organization post a surplus for the first time in five years.
“If you look at what was projected and where we ended up, this has been very good fiscal management on behalf
of the organization,” Odell said.
Next year’s forecast
Iskhagi-Bayat said it’s important that HHHS administration continue advocating for increased base funding from the ministries to offset future costs.
Historically, MOH’s annual hikes have not kept up with inflation, leaving hospitals in a difficult position. The province has yet to reveal how much additional funding health organizations will receive next year.
Right now, he said HHHS is projecting a $7.7 million deficit for the 2025-26 fiscal year – with increased costs for supplies, utilities, lab work, repairs and maintenance, and staff pay increases ranging from 3.1 to 6.5 per cent.
“We don’t know how much extra we’ll be getting across the hospital sector or long term care, it’s still in process… it’s probably going to be known by mid-May,” he said. “This is our starting point… the numbers could significantly change depending on what the base rate increase will be, or if more one-time funding comes in through the year. If anything, things should get better, not worse.”
