Southwestern Ont.'s largest hospital faces $150M deficit, forcing major program, staffing rethink

Southwestern Ontario's largest hospital is projecting a $150-million deficit next year, almost double the hole it faced last year. And it is looking at everything from patient programs to management structure to bring the ballooning financial crisis under control. 

The London Health Sciences Centre (LHSC) is also pausing new hirings, with any new or vacant positions requiring "discussion and approval" by the executive team. 

"The road ahead is going to be tough, not just for LHSC but for every single health care institution in the province," David Musyj, the hospital's newly-appointed acting CEO, told board members on Wednesday. "We have to keep going. We're going to get to the other side of it." 

Last year, the hospital's operating deficit was $78.1 million. 

"The health-care system continues to face extraordinary financial pressures, including growing patient volumes, higher care complexity, sustained inflation, staffing needs, and continued pandemic recovery," said John Leitch, a board member with a background in finance. 

The hospital system includes Victoria, University and Children's hospitals. It has an operating budget of $1.66 billion and is London's largest employer. 

Two years ago, hospital officials were given a five-year grace period from the province to balance the budget. This year, they say they have started toward that in the following three ways: 

• A review of all clinical and non-clinical programs comparing them to other hospitals across Ontario, which should take three to four months to complete.  
• A review of the hospital's leadership structure to identify "best practices and any efficiencies" to be done by a third party, which should be finished in the next three months.
• A requirement for all new and vacant position hires to be reviewed by the executive leadership team. 

CEO recently replaced 

The hospital system has been through a turbulent time recently. 

Former president Paul Woods was fired after it was revealed he travelled during the pandemic when restrictions were in place. More recent president Jackie Schleifer Taylor went on medical leave days after media reports about $500,000 spent on professional development trips to the Middle East, Portugal and Australia. Schleifer Taylor made almost $804,000 in 2023.

She eventually left the hospital. Musyj took over June 10. 

He was brought in from Windsor to provide stability to the hospital after the recent upheavals. 

During Schleifer Taylor's tenure, several high-profile executives left and three president positions were created, one at each Victoria, University and Children's, replacing the former structure which had just one one president for the entire hospital system.  

Schleifer Taylor also cut ties with St. Joseph's Health Care.