Reduction of Health Care Capital Formula

Year: 2007


Therefore be it resolved that SUMA continue to lobby the Provincial Government to begin to substantially reduce the Health Capital Formula from the current requirement of 35% local contributions on hospital construction.

Provincial Response

Response: Facilities that primarily serve only a region’s local population, including those in Regina and Saskatoon, are cost-shared according to the provincial policy of 65 percent provincial and 35 percent local share. Provincial expenditures on health care as a percentage of total government spending continues to grow each year. It is difficult to recommend further increases in spending to increase the provincial share of the cost-sharing ratio for health capital when the consequences may be that additional spending will crowd out other non-health related provincial priorities. Without increasing government’s total spending on capital, increasing the provincial contribution would result in the Provinces’ undertaking fewer health facility construction projects. There is a significant inventory and a lengthy waiting period for those communities wishing to see new or rejuvenated faculties. If fewer projects can be undertaken, the wait for those communities currently seeking projects would grow.