Health authority eases pain of budget cuts

The Vancouver Coastal Health Authority has taken another look at its finances and now says it will not have to reduce hospital services for the next 2½ months after all.

Earlier this week, it closed down three operating rooms—two at Vancouver General Hospital and one at UBC Hospital —as well as 37 acute care beds at St. Paul's and Mount Saint Joseph's hospitals.

The health authority said they would remain closed until the end of March, the end of the fiscal year, because it didn't have enough money to keep them open.

A spokeswoman said they were facing a dramatic increase in demand for services. Because of that,there was a rising overtime bill and a budget shortfall.

But now Vancouver Coastal CEO Ira Goodreau says all three ORs should be back in service by the end of this week, and the beds will also be reopened.

Goodreau told CBC News she hopes fewer than 100 surgeries will have to be cancelled.

"One OR at Vancouver General is already back in place today [Wednesday]. It is doing emergency-directed work. Both ORs will be up tomorrow and probably doing emergency type work and scheduled activity will resume on Friday at all three ORs."

Cut costs internally

She said the change in direction on the cuts was made after the health authority was able to cut other costs internally, limiting this year's deficit tothe amount the government was prepared to live with.

Acting health minister Colin Hansen had said on Tuesday he didn't expect any reduction in services beyond the regular spring break.

Hansen said the authority is facing a deficit of $40 million this year, as Finance Minister Carole Taylor predicted in her last quarterly report.

But Hansen added: "It has been indicated to the health authority that they do not have to take extraordinary measures as long as the deficit does not exceed that $40 million target."

There had been concerns that figure was about to balloonas high as $55 million.

The health authority has an annual budget of about $2.1 billion.