Montreal Shriners' hospital may face cuts

The fate of Montreal's Shriners' hospital for children remains uncertain, after the public service organization announced that some of its 22 health-care facilities will face service and budget cuts.

The Shriners, based in the United States, operate one Canadian hospital, in Montreal, and 21 others in the U.S. and Mexico.

The organization says rising costs for drugs, and shrinking donations, have forced it to rethink some of its health-related services, which are normally free.

Reports said the Shriners, who gathered for an annual assembly in Texas this week, were considering mothballing some facilities.

Now it appears no hospitals will close, but services may be reduced in some cases to outpatient clinics.

Gary Morrison, the chairman of the board at the Montreal Shriners' Hospital, said his facility has already gone through a round of budget reductions and could see its budget slashed again.

"What has to be decided, and has not been decided, is which hospitals will have budget cuts, and if a hospital will have it, to what extent," Morrison told CBC News.

However, he said he is optimistic the Montreal hospital will not suffer any significant setbacks.

"Only when you know what the budget cut will be, or what is being asked, can you determine if there will be any serious impact. I am not expecting there to be any serious impact," Morrison said.

Morrison said in spite of potential budget woes, the organization and the Quebec government still plan to build a new Shriners' hospital in Montreal to replace the current facility.