The funds hospitals use to pay day-to-day bills have plummeted by $2.2 billion since 2020, says new report

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Postmedia has not reviewed the content. by Business Wire The funds hospitals use to pay day-to-day bills have plummeted by $2.2 billion since 2020, says new reportAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.Rapidly increasing costs, austerity funding policies and record 1,300 job cuts push Ontario’s hospitals beyond the brinkTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountOTTAWA — Ontario’s hospital crisis has hit a boiling point, says new report released today by CUPE’s Ontario Council of Hospital Unions (OCHU/CUPE). Citing the latest data, Pushed over the brink: the escalating assault on Ontario’s hospitals highlights the dire conditions that hospitals are facing in the wake of Ford’s austerity agenda.In the past six years Ontario hospitals have seen a massive drop in their working capital, the funds available to cover daily expenses, including payroll and medical supplies. This figure has plummeted from $2 billion in 2020, to negative $280 million at the end of last year. Ottawa’s working capital is negative $135 million. As a result, many hospitals have been forced to borrow cash to make ends meet.According to the report, deliberate underfunding, understaffing and the further privatization of hospital services has led to emergency room closures, higher wait-times and reduced quality of care across the province.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againSignificant funding cuts deepen hospital sector crisisDespite rising costs of over 6 percent annually, the Ford government will only increase hospital funding by 3.3 percent for 2026/2027.“Hospitals need 6 percent annual increases simply to maintain services,” says Michael Hurley, the president of OCHU/CUPE, which represents 40,000 hospital workers across the province. “The Ford government has cut hospital budgets in real terms, year after year, resulting in a loss of beds and staff in the face of significant utilization pressures from an aging population.”Meanwhile, cost pressures and demand are rising. Hospitalizations have increased significantly over the last decade, amounting to 2 million extra hospital inpatient days. The average length of stay per patient has also risen 15 percent.According to Canadian Institute for Health Information (CIHI) data, Ontario hospitals receive the least provincial funding in the country. Ottawa hospitals need $355 million in order to reduce wait-times, add beds and meet the average spending per capita of other provinces.While Ford ran on the promise of ending “hallway healthcare”, CUPE says it has doubled under his leadership – from less than 1000 average daily hallway patients in 2018 to nearly 2000 in 2024. Lack of capacity has resulted in alarmingly high bed occupancy rates – regularly over the safe level of 80 percent, with Ottawa sitting at a staggering 100 percent.Chronic understaffing despite rising demandHospital operating deficits reached over $400 million in 2025, with Ottawa’s at $38 million. Despite dramatically lower staffing levels than the rest of the country, Ontario hospitals are managing their shortfalls by actively cutting workers. This has resulted in the loss of over 1,300 jobs in the past year alone. Even before the cuts, Ottawa needed 5,321 more full-time staff to match the capacity of other provinces.“Funding cuts are driving the staffing crisis facing Ontario hospitals,” says Hurley. “We’ve seen emergency rooms across the province regularly forced to close, and wait times everywhere are continuing to rise. Patients are suffering. It’s unacceptable.”The true cost of privatizationAs public funding falters, investment in private health services has increased. The Ford government cites wait-times as a driving factor toward privatization, yet research shows that the opposite is true. In the example of cataract surgeries in Ontario, patients saw an increase of 12 percent in wait times with the introduction of private clinics.“Privatization is not the solution. The research is clear, when we privatize services not only does the level of care suffer, but we’re paying much more for longer wait-times, further delays to treatment and reduced access for everyone but the most wealthy,” Hurley adds.CUPE is calling for a commitment of $5 billion in funding to the Ontario hospital sector in order to make up for the growing lack of capacity and capital to adequately staff facilities and treat patients. Multi-year funding, a halt to privatization and the implementation of nurse-to-patient ratios are also cited as solutions to the deepening crisis.View source version on businesswire.com: For more information contact:This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.