Treasurer's Report 2014-2015

Crossing the transformation ‘finish line’

Parkwood Institute Mental Health Care Building

With many years of health care restructuring behind us, St. Joseph’s crossed the transformation finish line this year. With much excitement and celebration, we opened the new Mental Health Care Building at Parkwood Institute in November 2014. This facility operates several inpatient, outpatient and community mental health programs previously located at Regional Mental Health Care London on Highbury Avenue.

Mental Health Care Building at Parkwood Institute

The Mental Health Care Building at Parkwood Institute is the final piece of mental health care restructuring at St. Joseph’s, following the opening of the new Southwest Centre for Forensic Mental Health Care in St. Thomas in June 2013.  

Combined, $500.6 million has been invested in facilities and equipment at both Mental Health Care buildings. The completion of these facilities marks a shift in our mental health care system, focusing on recovery and rehabilitation. Parkwood Institute embodies a new vision for health care; a community of care, recovery and rehabilitation combining our mental health care programs with our complex care, rehabilitation and geriatric care programs at one site, Parkwood Institute. Like the Southwest Centre for Forensic Mental Health Care, the new facility has had immediate positive impacts for patients, moving into private rooms with private washrooms, all in an environment designed to truly uplift and foster dignity and healing. The addition of a Tim Horton’s added to the excitement this year which opened in the cafeteria in April 2015.

Redevelopment continued at St. Joseph’s Hospital, with a three year construction project completed in December 2014 which transformed the front façade with full accessibility features, as well as new research and administrative spaces. This project represents an investment of $82.7 million at St. Joseph’s Hospital as of March 31, 2015 and marks the final stage of redevelopment for St. Joseph’s.

Finally, the technological landscape across St. Joseph’s was transformed with the implementation of HUGO – Healthcare Undergoing Optimization. HUGO has transformed medication order and reconciliation processes across the organization, integrating technology, medical practice and processes to reduce medication errors and adverse events. In total, $6.8 million has been invested in St. Joseph’s as part of this initiative.

Sound fiscal and service results

St. Joseph’s ended the fiscal year with an accounting surplus of $7.4 million which can be attributed to one-time unplanned Post Construction Operation Plan (PCOP) revenues of $7.7 million announced in March 2015. This PCOP funding in support of expanding programs and services in Mental Health Care and the Acute and Ambulatory programs located at St. Joseph’s Hospital. We have been advocating for this funding with the Ministry of Health in parallel with the opening of the new Mental Health Care Building at Parkwood Institute and the completion of redevelopment at St. Joseph’s Hospital. As we move into fiscal 2015/16, we will continue working with the Ministry to achieve final agreement on PCOP funding for future years and then plan to increase volumes in approved programs accordingly.

St. Joseph’s working capital ratio remains healthy at 1.7:1 and well within the guidelines in the Hospital Services Accountability Agreement with the South West Local Health Integration Network. For hospitals, a healthy working capital position allows for the restriction of funds in support of reinvestment and renewal of facilities and equipment, both in the short and long term.   

St. Joseph’s restricted investments for current and future commitments remain secure and total $172.9 million at March 31, 2015. These investments are externally managed by professional firms under the stewardship of the Investment Subcommittee of the Board and in accordance with the hospital’s Investment Policy Statement. 

Supporting St. Joseph’s care, teaching and research mission, capital investments during the year totaled $401.1 million. Of this total, $380.2 million was spent on major building projects, and $20.9 million was spent on equipment, including the completion of the redevelopment projects at St. Joseph’s Hospital and Parkwood Institute. St. Joseph’s Health Care Foundation contributed $2.8 million in support of capital purchases during 2014/15. The generous support of donors through the Foundation is vital to our ability to invest in the future while responding to today’s care, comfort and research needs.

Our next steps…

We continue to learn more about the future impacts of provincial Health System Funding Reform (HSFR) and at the same time, sustain rigorous budget planning processes to ensure readiness and responsiveness for both the short and longer term in a climate of continued fiscal uncertainty.   

Funding reform of this magnitude continues to hold challenges for all hospitals, including St. Joseph’s. Our organization is one of only four teaching hospitals in the province impacted by all five different service modules of the Health Based Allocation Methodology. This speaks to the complexity of St. Joseph’s and the scope of our roles in the hospital system.

As was the case a year ago, it must be noted that the timeliness of Ministry funding confirmations, including volume expectations, must be improved to support the ability of all hospitals to respond while sustaining the delivery of quality, safe patient care and balanced operations. 

Our work ahead includes continuously reviewing our infrastructure and administrative costs in alignment with the emerging new size and configuration of our organization post redevelopment and transformation. The past several years have demonstrated that we have met the challenges of supporting the organization through complex transitions, with shrinking resources. Crossing our transformation finish line this year, St. Joseph’s remains well positioned to take on a future where care, teaching and research programs are well-prepared to meet the most prevalent health care needs. 

Change, economic uncertainty and growing needs continue to be the backdrop for health care and indeed, all sectors of our society. St. Joseph’s continues to rise to these challenges through our mission and ministry of service, rooted in strong values, a clear strategic plan, and durable fiduciary and leadership principles. All this, and the constant engagement of patients, leaders, physicians, staff, volunteers, and donors helps us to ensure a sound foundation on which we can take new innovative steps and work in partnership with others to address compelling care needs, today and tomorrow.

St. Joseph’s is blessed with the support of dedicated, skilled staff and physicians, compassionate volunteers, responsive partners, and a supportive community. It is with appreciation to all that we present these financial results

View our full audited financial statements here.