The BC Care Providers Association today confirmed they have received formal confirmation from the Ministry of Health that contracted for-profit residential care providers will receive mitigation to address the negative financial impact of the HST. This development complements previous commitments BCCPA has secured from the provincial government since December regarding HST rebates for non-profit care providers and hydro costs.
"This breakthrough would not have been possible without the commitments of Finance Minister Colin Hansen and Health Minister Kevin Falcon to be accessible and listen to the concerns of care providers," said BCCPA CEO Ed Helfrich. "This result has saved facilities from making significant staff reductions with the implementation of the HST this summer."
In response to concerns raised by BCCPA, BC's Deputy Minister of Health has contacted health authorities and directed them to ensure "contracted residential care service providers are kept whole with respect to the financial impact of the HST."
Last summer, shortly after the HST was introduced, BCCPA concluded a review of the impact of HST on seniors' care. Based on that analysis, BCCPA concluded the HST would result in an annual loss of over $10 million for BC care providers. The report concluded that without mitigation care providers would be forced to lay-off staff and reduce service levels. The impact was particularly severe for facilities that had been encouraged to consider contracting out care services to maximize efficiency and maintain quality of care.
"This is a big relief for us," said BCCPA President Christine Nidd. "Without mitigation, the HST represented a severe challenge to the sustainability of our seniors care system in BC. The response of the Ministers involved and their officials is another demonstration of how renewing our seniors' care partnership in BC can protect quality of care."
BCCPA will be in contact with the Ministry of Health and Health Authorities in the coming weeks to discuss the administration of the government's directive with a view to ensuring a satisfactory and efficient mechanism is in place in time for the July 1, 2010 implementation of the HST.
BCCPA has represented health care leaders in BC for over 30 years. BCCPA members employ more than 7,000 people. They care for over 10,000 seniors each day in residential care and an additional 4,000 each year through home support.
