New fees in health budget aim to rein in rising costs

Health care got a funding booster shot in the Saskatchewan budget, but some fees are set to rise and health regions are being asked to reduce costs.

This year's provincial health budget is $4.68 billion – an increase of nearly five per cent over 2011.

However, fees are also on the rise as the government looks to rein in rising health care costs.

Starting Wednesday, the provincial drug plan will charge an additional $5 per prescription for children and seniors. The government estimates the move will save $10 million.

And for the first time two decades, the province is increasing the Senior Citizens Ambulance Assistance Program deductible. On April 1, the deductible will increase by $25 for an estimated savings to the province of $675,000.

The government also plans to save about half a million dollars a year by charging long-term care residents $20 a month for personal hygiene supplies, starting July 1.

About 2,700 seniors will pay the new fee, which will be adjusted annually based on increases to Old Age Security and Guaranteed Income Support.

Health Minister Don McMorris says the fee will standardize hygiene supply charges at long-term care facilities across the province. He says the current system is unfair, as it treats residents differently.

Health regions will see funding rise 3.5 per cent to $2.9 billion, but will be tasked with cutting operational costs. That will entail administrative savings, increased use of shared services, including bulk purchasing, and anticipated generic drug cost savings.

In addition, the government plans to cut labour costs by reducing lost time due to injuries, premium pay and sick time.

The province plans to spend $60.5 million to perform 8,000 additional surgeries while improving quality and safety initiatives. The government has set a target of reducing wait times for surgery to within six months by 2013 and within three months by 2014.

Saskatchewan is also spending $5.5 million to look at new models for delivering service and using health technology in new ways.

Other highlights of the health budget include:

• $42.7 million to begin construction of seven previously-announced long-term care facilities

• A $16.9 million increase for the Saskatchewan Cancer agency to support access to services and cover rising drug, operating and medical costs

• $16.4 million for equipment and capital maintenance

• $5.5 million in additional funding for the Shock Trauma Air Rescue Society (STARS) helicopter ambulance

• $4 million to expand the colorectal screening program across the province

• A $2.5 million increase to move two long-acting insulin drugs for diabetes (Lantus and Levemir)to the provincial formulary. The funding will also expand the province's insulin pump program to cover residents up to the age of 25

• $1.5 million to launch a rural physician locum pool to improve access to doctors

• A $1 million increase to allow for more intensive programs, including applied behavioural analysis for preschool children with autism and specialized training for health and education professionals

• A $600,000 increase to provide intensive fetal alcohol spectrum disorder prevention program for pregnant women at high risk, as well as additional support until the child reaches two years of age

• Planning and design will continue on replacements for Saskatchewan Hospital in North Battleford and Moose Jaw Union Hospital