650MainSt.

650,rueMain
Winnipeg,Manitoba Winnipeg(Manitoba)
R3B1E2CANADA
R3B1E2CANADA
TEL:204|926.7000
FAX:204|9267007
www.wrha.mb.ca

TEL:204|926.7000
TELEC:204|9267007
www.wrha.mb.ca

MEMO
Date:

December 7, 2016

To:

Senior Operations Leadership Council

Clinical Program Council

Copy:

Executive Council

Subject:

Additional Deficit Reduction Strategies

From:

Milton Sussman
President & CEO

As many of you likely learned about in recent media coverage, the Winnipeg Regional
Health Authority is challenged by a significant deficit forecasted to be $93 million in
2016/2017.
It is incumbent upon all of us to undertake meaningful efforts to control costs between
now and the end of the fiscal year. We must ensure we are effective stewards of public
funds now, and in the future.
In an effort to curb costs and more effectively address the deficit, the WRHA is
implementing the following deficit reduction strategies effective immediately:
1.

.5% Expenditure Reduction Initiative sites and programs are being asked to
revisit their .5% reduction initiatives and work towards achieving their savings target.
At this time we are forecasting a $4.0 million shortfall for 2016/17 in this area.
Achieving 100% of this years approved initiatives was a key component in the
development of the $93M deficit amount. It is critical that we work towards
achieving the savings targeted at the beginning of the year.

2.

Non-Union Position Vacancies hiring for all vacant non-union positions will be
frozen until April 1, 2017 for Corporate, Acute Care and Community Care. The
freeze can be appealed and will be reviewed on a case-by-case basis. Please refer
to the attached guideline for additional information.

3.

Discretionary/One-time Expenditures expenditures for the remainder of the

current fiscal year that are not essential to the delivery of clinical services or the
operation of a site should be deferred until the next fiscal year. Please ensure that
all discretionary expenditures are carefully scrutinized and where feasible either
delay the expenditure or find a less costly solution that will not negatively impact
patient care. Some examples of discretionary spending may include, but are not
limited to:

One time furniture and small equipment purchases

New PCs or laptops
Meal & travel expenses
Advertising and promotional activities
Administrative expenditures
Non-essential building expenditures

4.

Overtime beginning immediately, all non-clinical overtime is to be frozen and can

only be incurred by obtaining pre-approval from the appropriate CEO, COO or VicePresident. Clinical overtime needs should be reviewed in light of patient care
volumes and acuity levels and should be limited whenever possible.

5.

Constant Care Costs - all requests for Constant Care should be reviewed and
approved in alignment with the attached Constant Care Resource Guide. Constant
Care needs should also be reviewed in light of patient care volumes and acuity
levels and should be limited whenever possible. Please refer to the Constant Care
Guideline for more information.

6.

Service Volumes volume deliverables related to clinical services funded by

Health (cataracts, joint replacements, etc.) must be respected. Volumes cannot be
exceeded without prior approval of the WRHA executive.

7.

Net New PCs - no further net new PCs are to be purchased or leased by WRHA
sites and programs during the 2016-17 fiscal year. (See attached memo.)

Our current financial position requires us to work collectively and collaboratively to

manage and restrict the growth of the deficit and to identify and implement actions which
will assist with this effort. I call on everyone in the region to closely monitor expenditures
and make appropriate decisions while also ensuring patient and staff safety.
I am confident that a region-wide commitment to cost containment measures will ensure
that we achieve our forecasted financial position.

MS/ld