Ottawa Public Health warns growing funding gap may require programs to be reduced, cancelled

The medical officer of health is warning of a growing funding gap that may require Ottawa Public Health (OPH) to look at reducing or cancelling programs and services currently offered to the public.

In a report for Monday’s Ottawa Board of Health meeting, Dr. Trevor Arnason says the health unit is facing a structural funding shortfall growing by roughly $1.2 million each year, with the deficit expected to grow from $4.5 million in 2027 to $14.7 million by 2036.

“OPH has faced a structural cost-revenue imbalance for several years, one that has been managed through temporary measures (e.g., securing in-year one-time funding), cost containment, and workforce gapping, but not resolved at its source,” Dr. Arnason writes.

“Without deliberate action by the Board of Health, the province, and the City of Ottawa, this imbalance will continue to widen through the coming decade.”

Arnason says Ottawa Public Health’s financial stability rests on a “sustainable balance between operating costs and revenues” and a vacancy rate “within a manageable threshold of three per cent.”

The health unit currently has a staff gapping of 4.7 per cent, saving approximately $3.4 million.

In the report, Arnason says while the Ontario government is committed to covering 75 per cent of its cost-shared programs, the province funded 65 per cent of its cost-shared budget in 2023 and 56 per cent in 2026, “approximately $13 million below the 75 per cent cost share.”

In the report, Arnason recommends several strategic operations for the board to consider, including continuing to engage with the Ministry of Health on the “implementation of its stated policy commitment to fund 75 per cent of the cost-shared mandatory program budget.”

Other proposals are:

• The Board of Health direct Ottawa Public Health to undertake a “targeted service review to identify programs and services that may be considered for modification or discontinuation.” Arnason says the review will focus on programs where there is no legislated requirement to offer them or “population-level impact is comparatively limited relative to cost.” The Board of Health would receive a report with recommendations in 2027.
• The board direct OPH to continue its ongoing expenditure review to identify operational efficiencies and opportunities to reduce the projected cost-revenue gap.

Ottawa Public Health found approximately $9 million in internal efficiencies during an organization-wide service review in 2022-23.

The report says OPH is implementing a series of ongoing service and operational efficiency initiatives, including eliminating one director position, redesigning dental service delivery, the optimization of the Healthy Babies Healthy Children program, consolidating vaccine storage to Constellation Boulevard to save on rental costs and relocating the immunization clinic from J.H. Putman School to Merivale.

27% increase in funding to Ottawa Public Health: government

A spokesperson for Health Minister Sylvia Jones said the Ontario government has increased funding and provided additional investments to Ottawa Public Health since 2018.

“Our government has made record investments to support public health units (PHUs) across the province, including a nearly 27 per cent increase in funding to Ottawa Public Health since 2018,” the spokesperson said in a statement to CTV news Ottawa.

“We restored the 75 per cent provincial, 25 per cent municipal cost-share ratio for public health funding and have provided PHUs, including Ottawa Public Health, with annual increases to base funding each year since 2023.”

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