When the HST comes into effect in July, some care facilities will not see any big differences
By Shayne Morrow, Alberni Valley Times
The province has promised senior care providers across the province that they will not be affected by the introduction of the harmonized sales tax on July 1.
This week, the B.C. Care Providers Association received confirmation from the Ministry of Health that contracted for-profit residential care providers will receive HST relief, along with those facilities operated by non-profit societies. BCCPA spokesman David Hurford said it's actually the level of contracted-out services that's been more of an issue over non-profit versus for-profit, in whether they will receive a rebate of the new federal portion of the tax on goods and services.
"Non-profit societies are covered by a rebate through the federal government. For-profits were not eligible for the federal rebate - they will now receive a rebate through the health authorities," Hurford said. "But non-profits with contracted services were also subject to federal tax. Those who contracted out their care staff were hardest hit."
Fir Park/Echo Village is operated by the Alberni Valley Continuing Care Society. Executive director Barb Stevenson said her facilities will receive a 58% HST rebate.
"For us, the effect will be minimal," Stevenson said. "The group that's been really affected is those who contract out part of their services. We do everything in-house." When facilities contract out their health care work, those wages are considered taxable services, she explained.
For Fir Park/Echo, there will be some cost increases in certain supplies, however.
"Medical supplies are tax-exempt. Where this will cost us is in general supplies - food, paper products and off-the-shelf 'drugstore' supplies like Band-Aids, but we will get a substantial portion of that back," Stevenson said. "It's not a huge increase, but it's a concern. Inflation is a concern and fuel costs are also a concern."
On the other end of the spectrum, Tsawaayuus/Rainbow Gardens is operated by a non-profit, the West Coast Native Health Care Society, but care services are contracted out," according to manager Shaunee Casavant.
"Nobody has given us notice of how we would fit into the HST scheme," Casavant said.
Casavant said she's currently more concerned with the issue of leakage in her building.
"It's one more thing to deal with, and we already had so much."
Hurford said BCCPA will have to negotiate the terms of an agreement with the province to create a level playing field for care providers.
"There's no uniformity to the way these facilities are funded, so it's a bit of a nightmare," Hurford said.
"But in the end, the commitment from the province is that care providers cannot be left worse off than they were after July 1. That's our job, by July 1, is to make the arrangements."
With the HST out of the way, the province can concentrate on the real issues - like leakage at Rainbow Gardens, Hurford said.
"It's taken us a lot of time and energy to get back to zero," Hurford said.
