Presented at RVHS 2011 Annual General Meetings of Members
by RVHS Board Member and Treasurer Lea Ray

From a financial perspective, it has been another very successful year for the hospital. Fiscal 2010–2011, the third and final year of the hospital’s deficit elimination plan has been our best yet. The hospital achieved an operating surplus of $8.9M, which was $3.7M better than planned.

Overall hospital revenues increased by 4.1 per cent, while our operating costs climbed 2.6% compared to the previous year.

Driving our success this past year has been exceptional revenue performance and our continued focus on operating efficiencies and cost containment through our Lean management philosophy. As part of its operating plan, the hospital put a major focus on revenue enhancement this past year.

In addition to securing additional post-construction operating funds for new space and expanded programs as part of our Ajax and Pickering site redevelopment, the hospital received bonus funding for achieving wait time improvement targets in our emergency departments at both sites.

We attracted additional funding during the year for performing more CT, MRI, and surgical procedures targeted by the government for reduced wait times, and more priority program cardiac procedures than we had planned.

The hospital also secured new funding from the Central East Local Health Integration Network to open a 20-bed transitional/restorative care program at the Ajax site. This innovative new program, opened in January, is helping frail, elderly patients regain a level of functioning and independence to return home.

We have already reinvested some of our financial surplus directly into patient care.

Approximately $1.3M was spent on various quality of care improvement initiatives, staff education and training, as well as new furniture, equipment, and mattresses that will help reduce the risk and spread of hospital infections. In addition, the hospital will use part of last year’s surplus in the current year to accelerate investment in major capital equipment and renew our aging facilities infrastructure.

While our capital needs far exceed available funding, the hospital was able to invest close to $74 million in capital this year, most of which was related to completion of the Ajax and Pickering site redevelopment.

Fundraising is a critical part of our hospital’s financial well-being, and this year is no exception. The Rouge Valley Foundation donated and transferred $687,000 to the hospital this year in support of much needed capital purchases.

Thank you on behalf of the Board to all donors, volunteers and Foundation staff. We continue to make the most of every dollar raised by aligning the Foundation’s fundraising goals and efforts with the strategic priorities of the hospital.

The hospital’s working capital deficit continued to improve and ended the year at $31M.

Improved cash flow and prudent cash management has enabled the hospital to build up cash reserves through the year, reducing short term borrowing needs, and reliance on debt to fund minor capital expenditures.

Rouge Valley continues to be a very busy place and our staff has done a tremendous job in striving to meet the health care needs of a growing and aging population.

This year, the hospital treated approximately 29,000 inpatients, provided 52,000 mental health, rehab and complex continuing care patient days, and registered 109,000 patient visits across our two emergency departments. On the outpatient side, we had 190,000 clinic visits and performed 16,500 day surgery cases.