New health funding formula debated
$6.6-million cut would "destroy" health board

by Glenn Taylor
Northern News Services

INUVIK (Sep 12/97) - A proposed shift in the way health-care dollars are spent in the NWT would slash $6.6-million or nearly 25 per cent from the Inuvik Regional Health Board's budget and "destroy the board," says board CEO Frank Russell.

The Department of Health and Social Services undertook a new formula funding study last November to determine -- using mathematical equations -- whether health dollars are being distributed fairly across the territories.

The results show that $13 million now spent in the Western Arctic on health care should be transferred to the Eastern Arctic, where funding per capita is much lower.

Russell and other board CEO's met with the department last month to review the proposal. "There's a number of problems with the formula," said Russell, noting the Inuvik regional board would take by far the largest cut, at $6.6-million. "That would of course destroy this board," said Russell.

Could the board weather such the change? "Absolutely not," he said. "It would destroy the board. We would have to rethink everything, and many programs would be cut."

Most Eastern Arctic boards would see sizeable increases in funding under the formula, which is based on population and health needs. Inuvik MLA Floyd Roland and other Western members have come out against the proposal, labelling it a cash grab from West to East, as 1999 and division looms.

Premier Don Morin told CBC Radio last week that the formula has nothing to do with Nunavut and 1999. Roland disputes that, however, and said "when the people of Inuvik and the region hear of a $13-million shift in funding, with $6 million out of the Inuvik region alone, they do say, 'This is a division issue.'"

"I'm not suggesting that some Eastern boards aren't seriously underfunded -- they are," said Roland. "But not at expense of Western boards."

Yellowknife North MLA Roy Erasmus and Thebacha MLA Mike Miltenberger expressed similar concerns.

Iqaluit MLA Ed Picco called the MLAs' reactions "premature and reactionary," and said health care is chronically underfunded in the East. Picco said "monies transferred (for health care) is for all NWT residents. Allocations are based on needs and priority."

Warren St. Germaine, director of financial and management services for the department, said the formula is intended to make health funding more equitable, but agreed it "doesn't address adequacy of funding (and) it doesn't address whether there is enough funding within the system right now."

St. Germaine said the formula should not be perceived as an East-West issue, and said that "not to consider equitable funding to all NWT residents would be irresponsible."

With division looming, "the timing (of the report) seems awkward, but that's very much our objective."

"They were trying to address equatability and fairness, and this didn't do that," said Russell. He agreed some Eastern boards are underfunded, but concluded "there is a requirement for additional funding."

Inuvik Regional Health Board chair Nellie Cournoyea and other chairs will travel to Rankin Inlet in two weeks to discuss the subject further with the Minister of Health and Social Services and his department.

St. Germaine said the next step would be to put the proposal into a business plan, for further review by a legislative assembly standing committee. "Whether it's this (formula) or another tool is something to see," said St. Germaine. But the redistribution of health funding "is the desired outcome" the department is seeking.

Roland said "it is time the government addressed adequacy of service. You can't take money from boards that have done their part to manage their reductions, give it to others, and not have a negative impact on those who have managed well. This region has already done its share and can no longer take any more service reductions."