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- TERRACE BAY NEWS MARCH 24, I976 PAGE I6 AUSTERITY PROGRAM AS IT RELATES TO THE McCAUSLAND HOSPITAL PRESS 'RELEASE - FROM: The McCausland Hospital Board of Governors DATE: Monday, March 22nd, 1976 The Provincial Government recently announc- ed The McCausland Hospital budget cuts for 1976 - $23,500 and 3,598.8 paid hours. As these figures relate to the 1975 approved bud- Jet, the picture is more dismal than at first - sight. Although our approved hours for 1975 were 46,276 hours (the total of all allowable hours for our hospital employees), the actual hours worked were 49,461 hours. The hours that will be allowed for 1976 must be reduced by 3,598 and this reduction must be made from the 1975 approved hours (46,476). This means, as you have noticed already, that we must delete not 3,598 hours, but 6,583 hours from the total hours the hospital staff worked last year, that is, we must reduce the hours from 49,461 hours to 42,878 hours for 1976. In spite of the austerity programme reduction in paid hours, we are expected to exceed approved hours by 915.8. The dollar picture is no more heartening. The approved budget for 1975 was $267,204 for salaries and wages; the actual dollars spent on salaries and wages was $295,637. The bud- get cut of $23,500 must be deleted from the 1975 approved budget ($267,204). The actual dollars that must be trimmed from 1975 expen- ditures is, therefore, $51,953 and not $23,500 (Actual salary cost for 1975 - $295,637; app- roved salary cost for 1976 is $267,204 - $23, 500= $243,704). We have been made aware by the Ministry of some statistics that you should be made aware of. The provincial daily average cost of salaries in the nursing unit in hospitals of 35 beds or less is $264; the same costs in our hospital amount to $389. We are $125 or 47.35% over the provincial daily average. These figures support our decision to reduce our budget in the salaries of the nursing unit of the hospital. : The provincial average, on the same basis, for Administration costs is 40.48% of general and special services; our hospital costs amount to 41.38%, 0.9% over the provincial average. Our interpretation of these figures indicates that our Administration costs do not warrant any reduction. We, therefore, have made no reduction in this area. Because of the constraints imposed on our 1976 budget, we have made the following staff adjustments on a daily basis: a reduction of two and one-half Registered Nurses; an addit- ion of one-Registered Nursing Assistant; a re- duction of one Dietary/Housekeeping employee; an addition of ong RN on call for all weekend shifts (8); a reduction of 8 hours per week Housekeeping Supervisor. The reduction in the RN complement will amount to a dollar reduc- tion of approximately $49,500 (273 days x 2.5 nurses x $60). |f we were to include 15% for benefits and vacations, the total reduc- tion will amount to approximately $47,093. As we are expected to delete $51,933 from the 1975 actual wages paid, we will have a minimum deficit of approximately $4,840 provided the new austerity programme is implemented by the Board immediately. General and Emergency Health Services can- not be met without Lab and X-ray facilities in our hospital. The Lab is presently operating under a provisional licence which will expire June 1976 and which cannot be renewed. Ministry regulations require that we employ a qualified Registered Lab Technician. (We have complied with this regulation in order to retain our Lab facilities). However, as the hours and wages of the Lab employees are not included in any of our calculations above, we have initiated negotiations with the Ministry of Health to obtain approval for these addit- ional hours. : The Board Members met with the hospital rep ~-resentatives of the Nursing Association and the Service Employees International Union and explained step by step the position of the Min -istry and the cut back in dollars and working hours. Although it was agreed that the cut back is inevitable, they offered suggestions which the Board welcomed. We must all realize, surely, that the re- ductions had to be made. The nurses and med- ical staff have been the first to point out that the reduced service may be adequate in normal times but that in time of emergency we do not have adequate coverage. Both, we must add, have indicated that they will, in spite of these constraints, do their utmost to meet any emergencies that do arise. The Board does not intend to accept without question the constraints that have been im- posed in this hospital. A constant appraisal of the effects of the reduced staff will be made and any possible adjustments to improve the situation shall be made. appeal to the Ministry of Health for special consideration in view of the deficits that seem inevitable in spite of our attempt to continued page 17 Further, we must wii, AMAT IN A at REP EES smear dh Ee RE CERI aC a ee ET