Reduction of Health Care Capital Formula
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.
Response: Facilities that primarily serve only a regionâ€™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 governmentâ€™s total spending on capital, increasing the provincial contribution would result in the Provincesâ€™ 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.