New Budget To Address Rising Health Care Costs, Improved Service Delivery, And New Facilities

* Health and Social Services [to Nov 2005]
The new Health and Social Services budget will address rising costs, increasing demand for new and existing services, and capital needs.

Health and Social Services Minister Jamie Ballem advised today that this is a very significant year for the health system. "Our capital needs are great as we complete the largest phase of construction of the new East Prince Health Facility, and the establishment of a new diagnostic imaging and cancer treatment services at the Queen Elizabeth Hospital," said the minister.

The 2002-2003 budget will increase to $390 million. It includes a one-time expenditure of $9.6 million to establish a new MRI and Linear Accelerator services. Government will provide an additional $21 million to fund construction of the new East Prince Health Facility.

The new budget includes funding to address rapidly rising health care costs, especially in acute and long term care. It also responds to increased demand for access to community services such as palliative care, home care and community mental health.

One of the major goals of the strategic plan for the Health and Social Services System is to meet increasing demand while ensuring a sustainable system. "This budget will support several initiatives to improve sustainability, for example, it includes additional funding of $900,000 for a primary care redesign initiative to enhance community services that prevent, reduce and manage illness using a multi-disciplinary team approach," said the minister. "These significant investments in improved service delivery are designed to reduce demand on the system, improve the way we use resources, and help to reduce and control costs in the longer term."

The 2002-2003 budget will also support wellness and children's health. A provincial strategy will be developed to prevent, reduce and manage chronic disease which is the major cause of death, hospitalization, and reduced quality of life in the province. The provincial diabetes strategy will be enhanced through new funding of $250,000. The implementation of the provincial healthy child development strategy will continue to support early interventions and supports for children and families. "We must do more to promote wellness and children's health if we are to improve the health and well-being of Islanders, and reduce future demand on the system, and this year we are taking several major steps forward in this area," said Minister Ballem.

Other new investments include an additional $2.1 million for provincial drug programs, mainly for seniors and social assistance clients.

Funding for out-of-province hospital services will increase by $1.3 million to cover projected increases in rates charged by these hospitals.

Funding of $1.1 million is budgeted for the expansion of Community Hospital O'Leary to accommodate ten additional long term care nursing beds. An additional $480,000 will be provided to private nursing homes to assist with rising costs and the growing number of subsidized residents who receive quality care in these facilities.

Building on the success of the new Disability Supports Program, an additional $1.5 million will be allocated to help meet the unique disability needs of clients and families.

An additional $890,000 will be allocated to increase specific social assistance benefits such as clothing, household and transportation allowances.

Work towards other strategic priorities will continue, including recruitment and retention of health professionals, and the development of indicators to measure and report system performance and health outcomes. "We believe that this budget, along with the dedication and commitment of our health care providers, provides us with good direction to achieve our strategic goals, and to sustain a reasonable rate of growth in health spending."

Media Contact: Jean Doherty