HEALTH BUDGET COMBINES NEW INVESTMENTS WITH SUSTAINABILITY MEASURES

Recognizing healthcare's high priority to the government and the people of Saskatchewan, the Health budget has an overall increase of $160 million or 6.3 per cent. This will allow the vast majority of programs to continue and strategic investments to occur, but some system change will be required. Health spending now accounts for 44 per cent of provincial program spending.

Funding increases for regional health authorities range from 3.6 to 6.6 per cent, with the larger increases targeted in those regions operating provincial hospitals. Although these are significant increases, changes in health delivery are required and will include further administrative efficiencies, changes in staff mix, facility closures or conversions, and reductions in long-term care bed numbers. Saskatchewan Health will be working closely with regional health authorities to finalize the regional plans in the coming months.

Incremental funding will be provided to high public priorities:

· $2.5 million to achieve performance goals for high priority surgeries
including the backlog of patients who have been waiting in excess of 18
months for necessary, but non-lifethreatening surgeries;

· $2 million toward the purchase of a new MRI in Regina that, once
operational, will provide approximately 5,000 to 6,000 more MRIs annually;

· $1.8 million to expand diagnostic testing capacity including
approximately 4,000 additional MRIs and an additional 2,700 CT scans;

· $6.6 million for the Cancer Agency to provide approximately six per cent
increase in chemotherapy treatments and patient visits as well as cover
operating and drug cost increases;

· $2 million to expand renal dialysis capacity;

· $16 million for the drug plan, a 10 per cent increase; and

· $1 million ($2 million annualized) for a new provincial plan to assess and
support individuals with cognitive disabilities (which includes Fetal Alcohol
Spectrum Disorder).

Capital facility construction projects, capital equipment purchases, health research, Healthline, health bursaries, and health information technology will be funded at levels consistent with previous years.

More than 70 per cent of the health budget increase this year will be directed to covering salaries, benefits and physician fees.

However, as is true across Canada, the rising costs of drugs, equipment and technology; health care worker salaries, benefits and doctors' fees; the needs of an aging population; and growing public demand and expectations, outstrip available financial resources. Therefore, substantial reforms will be undertaken to address the sustainability of the health care system.

"Our goal is to have a quality and sustainable health care system within available resources. We will accelerate the pace of change for sustainability outlined in the Health Action Plan," Health Minister John Nilson said. "However, in the absence of appropriate levels of federal funding, we will have to make significant system and program changes."

Saskatchewan Health will reduce its administration costs by six per cent and grants to a number of third party organizations will be reduced or eliminated.

Effective July 1st, 2004, Saskatchewan Health will change the coverage for certain drugs to cover the lowest cost drug that is proven to be effective for the condition being treated. Also effective July 1st, 2004, several fees will be increased and in some instances, applied to a broader base. These will include Provincial Laboratory water quality tests, vital statistics certificates and documents, podiatry care and hearing aids. (Backgrounders attached)

"We are focusing our spending on those areas of highest public priority," Nilson said. "The Saskatchewan public has said very clearly that a responsive, publicly funded health system is essential. While the health sector spending increase is significant, policy and system efficiencies are needed to accelerate change. These required reductions will not be easy. However, they are essential to make our system sustainable and available for the next generation."

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For More Information, Contact:

Mark Rathwell Health Regina Phone: (306) 787-4083