Now the Sault’s largest employer, Sault Area Hospital says growing demand and a larger workforce are adding to budget pressures
Sault Area Hospital reported a $9.4 million deficit during its annual general meeting, the last for outgoing president and CEO Ila Watson.
Watson said all hospitals in Ontario have been struggling financially with rising costs of health care.
“We receive most of our funding from the province and we have been focused, in our operating plan, on continuing all of the services that we have currently available in the community and beginning to position for some future-focused activities,” said Watson.
In December, the hospital’s board was told the 2025/26 deficit could be higher than $20 million, but that figure was ultimately halved.
“We started at a figure much higher than 9.4 and got additional funding within the year. So that’s where we ended the year’s position,” said Watson.
Watson’s last day working for the hospital will be on Friday. Immediately after that, Greg Zambusi, current VP and CFO of SAH, will take over as interim CEO.
“We continue to struggle as costs continue to increase, while we want to still keep all our our patient care activities in place and all the services for the community,” Zambusi explained to the media.
Zambusi noted the $9.4 million deficit is the largest since he became CFO. Last year, a $30 million projected deficit was eventually whittled down to $1.5 million as a result of incremental funding through the year.
Watson noted that SAH is now Sault Ste. Marie’s largest employer, with close to 2,600 employees, including 2,150 staff and about 180 physicians plus locums. .
“Since Algoma [Steel] has done its reductions, we are the largest employer,” she said.
That complement of staff and the salaries that come with them has contributed to budget increases over the years.
“When we moved here to this hospital in 2011, our staff number was at about 1,850. So we have grown,” said Watson.
“We have grown some of our activities. Our cardiac program, for example, has grown. There are other services that we now offer, so that’s some of the growth as well. And demand for services — we’re fuller and busier than ever. So we have to make sure we have enough resources to deliver the care in a safe manner,” she said.
When including the hospital’s 400 volunteers, about 3,000 people are tied to the organization, said Watson.
— with files from Greg McGrath-Goudie