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NDP wiped NRHA deficit slate clean

The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.

The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.

Jonathon Naylor Editor Just before its recent merger with the Burntwood RHA, the NOR-MAN RHA had its deficit slate wiped clean by the provincial government. The NRHA had been running an accumulated deficit of $16 million before the NDP quietly cut a cheque for the full amount on March 31. In a statement, the province said that following the 2010-11 independent review of the NRHA, 'a decision was made to proceed with a one-time, $16-million financial adjustment.' The payment was intended to 'improve the NOR-MAN RHA's financial position for their Journey Forward,' which is the name of the NRHA's campaign to meet the review recommendations. The move was surprising considering the province does not normally cover RHA deficits. Amalgamate Less than three weeks after making the payment, the NDP ordered NOR-MAN to amalgamate with the Burntwood RHA out of Thompson to form the new Northern Regional Health Authority. Corliss Patterson, former spokesperson for the NOR-MAN RHA and now a spokesperson for the Northern RHA, expressed NOR-MAN's gratitude. 'In the spirit of the NRHA's Journey Forward, which marked a rededication of the board, management team and staff, (the province) wanted us to be able to begin our 'journey' in a financially balanced position,' she said. NOR-MAN turned a $488,500 surplus in 2010-11, but that did little to diminish the $16-million accumulated deficit. The deficit was previously said to be $12.73 million, but that figure did not include monies related to capital assets. NOR-MAN blamed the deficit largely on three areas of expense: patient transportation, home care services and physician remuneration. In 2010-11, patient transportation costs rose $1.10 million, or 14 per cent, for a total of $8.84 million. Community-based home care costs went up $385,000, or seven per cent, to $5.56 million for the year. Medical remuneration costs actually declined $723,500, or five per cent, down to $15.93 million. In the spring of 2005, NOR-MAN's accumulated deficit stood at $2.2 million.

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