Grand River Hospital won't rule out layoffs following provincial budget

Hospitals in Waterloo region will have to poreover the new provincial budget before they can rule out any potential layoffs.

The Progressive Conservative government has pledged to increase hospital spending by $384 million, two percent more than last year.

Prior to Thursday's budget, the Ontario Hospital Association said hospitals would require a 3.45 per centincrease to keep pace with inflation and population growth.

Mark Karjaluoto, director of communications for Grand River Hospital, says it will take a few weeks to determine what those numbers mean at the local level.

"It does take some time for the budget announcement ultimately work into our funding letters and then to trickle down into what that means on a frontline basis," Karjaluoto said in an interview with CBC News.

In February, Grand River Hospital president Ron Gagnon confirmed 40 full and part time registered nursing positions were cut, in an effort to reduce the hospital's $7 million deficit.

'Less money in the coffers'

Karjaluoto said it's too early to say if any more cuts or layoffs will be coming, but the hospital is working to reassure employees in the meantime.

"I understand that certainly people want to have answers as quickly as possible," he said.

"What we've been trying to tell people in the hospital community is that as soon as we know more, we will tell them more. And that's sort of the best we can do for the time being."

Cambridge Mayor Kathryn McGarry also expressed concern about funding for hospitals, particularly in light of a recent funding request from Cambridge Memorial Hospital, which has asked the city for $400,000 to help purchase new equipment.

"The fact that hospital funding will be less than the average cost of living increase each year is going to put more significant pressure on our hospitals, in order to provide the care that they need for our growing population, with less money in the coffers," McGarry said.

"So I think we'll be needing to ensure that the people in Cambridge continue to donate, to ensure that our hospital is getting its new equipment."