LHSC $150M short: New 90-day target set to address crisis

London Health Sciences Centre (File)

London Health Sciences Centre (LHSC) said they are facing “significant budget pressures” in a statement released on Wednesday.

With a deficit of $78.1 million last fiscal year, this year’s projections are estimated even higher.

"We're projecting an approximately $150 million operating deficit for this current fiscal year," said acting CEO David Musyj.

Musyj said part of the shortfall comes from several one-time government payments that boosted the 2023-2024 bottom line.

To counter, he is implementing a 90-day plan to right the ship, while protecting front-line staff and patient care.

Two years ago, the LHSC was given five years to balance their budget by Ontario Health, and their plan to get their books in check will see a third party brought on board to identify efficiencies and best practices, benchmarking against other hospitals, and a revised recruitment process.

According to Musyj, it will include a deep dive into the current size of hospital administration and look at the organizational structures of other Ontario hospitals that spend less money.

Musyj said only then can he go to the province and ask for help, “That's the work that needs to be done. We're not going to do this on the back of the napkin. It's going to be a plan that's sustainable. That is based on evidence. So when we implement it, it'll take probably about 90 days to get this work done. And then once we implement it, then that's going to be moving forward."

While many hospitals across the province are in similar standing, LHSC said, “We appreciate the government’s recognition of the challenges Ontario’s hospitals are facing. We have a lot of work ahead, but we are committed to taking the necessary steps necessary to get to a balanced budget within the next three years.”

— With files from CTV London's Sean Irvine