Byline: Carlito Pablo, Georgia Straight
Providers claim Liberals plan to claw back funds.
A health-industry group has claimed that grandparents and other seniors recuperating in publicly funded facilities may end up getting poor-quality care because of the harmonized sales tax. In effect, some $42 million will be siphoned out of funding for elderly care and into the provincial treasury in the form of additional tax costs over the rest of the B.C. Liberal government's current term of office, according to an analysis by the B.C. Care Providers Association.
"What this represents is just a transfer of money back from the health budget to the finance ministry," BCCPA spokesperson David Hurford told the Georgia Straight. "If you're going to a restaurant...the consumer there is clearly paying the costs. In our sector, these are public-health dollars. You're taking health dollars out of the system. It's just going back to the Ministry of Finance." The BCCPA speaks for nonprofit and private operators of facilities accounting for over a third of all publicly funded long-term-care beds in the province. Its member organizations care for more than 10,000 seniors each day, and employ more than 7,000 people.
The association released its analysis of the HST's impact on seniors' care immediately after the B.C. Liberal government defended the tax in the throne speech delivered by Lt.-Gov. Steven Point on August 25. Set to take effect on July 1, 2010, the new tax will combine the seven-percent provincial sales tax and the five-percent federal goods-and-services tax. The 12-percent HST will cover a broad range of goods and services previously covered by the GST but not by the PST.
In the case of senior-care providers represented by the BCCPA, this means a tax increase of $10.5 million a year. This will result from additional costs for hydro, medical supplies, information-technology systems, professional fees, education, training, and building maintenance and operations. Based on a scenario drawn up by the association, a 100-bed facility could take a $210,290 hit--a cost equivalent to four to five full-time care staff positions. "It will mean poor quality of health and layoffs," Hurford said. "It will mean that we will not be able to care for as many people."
The association wants to meet with Health Services Minister Kevin Falcon to explore ways to mitigate the HST's impact. Ministry staff told the Straight that Falcon was out of the country and unavailable for comment. In the throne speech, the government pledged that $1.6 billion in HST transition funds coming from the federal government will be used to protect health and education services. However, the New Democrats have accused the B.C. Liberals of planning deep health-care cuts.
Last month, NDP health critic Adrian Dix noted that regional health authorities face a $360-million funding shortfall, which will result in cost-cutting measures including shutting down operating rooms. On August 5, Dix warned that the Campbell government is preparing to cut counselling and treatment programs for victims of abuse and addiction. For providers of senior care, the HST will result in a reduction of funds that can be spent on patient care. "It's kind of a reverse transfer," Hurford said. "It really has the effect of a cut to the health budget."
