efficiencies won't solve hospital financial crisis, ontario hospital association says
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ottawa's bruyère health, which reported a $12-million operating deficit in 2025, recently announced cuts to 55 front-line health care positions.
jean levac
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postmedia
job cuts rolling out at ottawa’s bruyère health and other ontario hospitals are being described as devastating by unions representing front-line workers, but the head of the ontario hospital association (oha) warns that cuts and efficiencies being undertaken by hospitals around the province will not be enough to dig them out of the financial holes they are in.
“it is kind of zombie policy to think we can efficiency our way out of these structural pressures that are rooted in demographic change in the province,” said anthony dale, president and ceo of the oha. “it’s just unrealistic, and it’s starting to affect the underlying financial health of our sector.”
dale made the comments after officials with cupe announced ottawa’s bruyère health would be cutting 55 front-line health positions. those cuts come amid a province-directed effort to get indebted hospitals to balance their budgets within three years. bruyère, which reported a $12-million operating deficit in 2025, said that the cuts would align its staffing levels with those of similar health-care organizations and that some of the positions were currently vacant.
however, cupe 4540 union president douglas currier said the cuts to frontline practical nurses and personal care aides would mean less time with patients, an increased fall risk for patients and more stress and exhaustion for front-line workers who were already working through their lunches and breaks to keep up.
“(health minister) sylvia jones has said it is necessary for us to work together with our hospital partners to make sure that they have a path to balance. i’m here to tell you that hospital staff do not feel like partners. we feel like hostages to premier (doug) ford and his budget, and the 55 cupe members are the first casualties,” currier said.
anthony dale, president and ceo of the ontario hospital association, said it was “kind of zombie policy to think we can efficiency our way out of these structural pressures that are rooted in demographic change in the province.”
matthew plexman, oha
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handout
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ontario hospitals face a billion-dollar structural deficit that is growing rapidly, dale said, despite actions by individual hospitals to save money. those cuts and efficiencies are part of a hospital sector stabilization plan, a provincial initiative asking hospitals to reduce costs and to balance their budgets over three years.
so far, dale said, the stabilization plan has found a half-billion dollars in what are considered “low-risk” savings. the province has said hospitals can’t consider “higher-risk” cuts that would significantly affect services. but hospital costs are rising by six per cent a year, which, in the 2026-2027 fiscal year will amount to $2.7 billion in new expenses. the province increased health funding by four per cent last year, but is expected to increase it by two per cent for the next two years.
“there will still be a structural deficit at the end of this year and the pressure is only going to carry on,” dale said.
meanwhile, long waits in emergency departments and stretchers in hallways have become chronic at many overburdened ontario hospitals despite record investments by the provincial government.
recently, ahead of the 2026 ontario budget on march 26, finance minister peter bethlenfalvy signaled the province’s intention to rein in increased health-care costs, calling the rapid growth of the $91.5-billion provincial health budget “unsustainable.” ford said this week there would be no health-care spending cuts in the budget. health is the biggest line item in the provincial budget. ontario, the most populous province in canada, spends the least per capita on acute care, hospital beds and staff.
douglas currier, president of cupe 4540, said unionized employees felt like “hostages” to the ford government’s budget.
jean levac
/
postmedia
unionized workers at bruyère and elsewhere say they fear what will come next as hospitals try to balance their budgets amid rising costs.
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“it is a bit early to tell if there are going to be more cuts, but i am afraid for my membership, i am afraid for other unions, non-unionized members of our hospital and everyone,” currier said. “can we close a $12-million gap with what has been announced? i don’t think so. i think we have more tough times ahead.”
dale said the financial situation of ontario hospitals was at crisis level and many had been spending reserve funds to make ends meet.
even if the province increases its annual hospital funding by more than two per cent, he said, the underlying problems will remain.
“tough choices will still have to be made. we can’t kick this can down the road, we have to confront the challenges,” dale said.
those choices, he said, should include a close look at what hospitals can and cannot do. changes might focus on more care delivered at home through so-called hospital-at-home initiatives, the use of artificial intelligence and technology to drive efficiencies and looking at whether every hospital has to be a full-service hospital.
“it is pretty clear it is time to make some decisions about the full scope of hospital activity in the face of these deepening financial pressures,” dale said.
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