SOMBA K'E/YELLOWKNIFE - David Ramsay says enough isn't being done to get the Stanton Territorial Health Authority's deficit under control.

The Stanton Territorial Health Authority has experienced growing deficits since 2003. - NNSL file photo

Those running the authority, meanwhile, blame the deficit on a mixture of ballooning health care costs and an out-of-date funding formula that doesn't take into account the work demanded of the territory's largest hospital.

"Eighteen months ago the minister had a plan to get that deficit back down to zero," said the Kam Lake MLA. "In the last 18 months nothing has been done to address the deficit - if the actions in the plan had been taken then the deficit shouldn't be so large."

The authority refused to release a copy of the plan, explain what was in it or say whether its recommendations had been followed. Ramsay, who was at the Standing Committee on Social Programs meeting at which the report was tabled, said he couldn't release the report either. Over the past three years the territorial government has bailed out the authority's deficits to the tune of $18 million. The deficit for the 2009-10 fiscal year was $7 million.

"What are the causes? Is it chronic underfunding, loose billing practices, not collecting on accounts receivable for our of territory patients or a combination of all?" asked Ramsay. "If it's underfunding, then we should be funding the authority for what their real needs are. It lends itself to better management decisions."

Stanton Territorial Hospital provides some services to the entire territory, including specialist services, travelling physicians and nurses along with some public health programs. Paddy Meade, the authority's public administrator, wants people to keep that in mind before pointing fingers at her hospital.

"Yes, Stanton has a deficit. But Stanton is providing the majority of service and backup to the other authorities," said Meade. "You can't look at each authority as a stand-alone, the entire system has a deficit."

While budgets have increased over the past decade, the funding formula for the territory's health authorities hasn't been updated since the 1997-98 fiscal year. Meanwhile, Meade said the flow of patients into Stanton from the territory has increased substantially. In her spring update, Stanton chief executive officer Kay Lewis claimed 60 per cent of the authority's operating deficit is "directly attributable" to territory-wide services provided by the hospital.

Meade said the formula difficulties are being worked on and that Health and Social Services Minister Sandy Lee has committed to "coming up with a whole new system" for funding.

Beyond funding formula difficulties, Meade said Stanton shares some similar struggles with health authorities across North America - rising drug, labour and equipment costs.

Unique to the Northwest Territories is the huge cost of medical travel - at $27.1 million for 2009-10, it represented a quarter of the authority's $107.1 million in total expenditures. As well, the territory is plagued with high incidents of chronic disease, such as diabetes and heart disease, along with higher mental health and addiction problems.

"I don't think deficits are unavoidable," she said. "I think we have to address how we're aligning service, what is the right sized budget for each authority.

"There are efficiencies we can make - we're conducting a medical travel review to make that more efficient. We will look at the nurse and physicians pool and how better to use those resources."

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