Budget 2004 -- Government of British Columbia.
         
Contents.
• Printer-friendly versionAdobe Acrobat Reader link page. (PDF)  
• Premier's Letter to the Minister  
• Premier's Letter to the Minister of State for Mental Health and Addiction Services  
• Message from the Minister  
• Accountability Statement  
• Ministry Overview  
• Resource Summary  
• Core Business Areas  
• Goals, Objectives, Strategies and Results  
• Summary of Capital, Public-Private Partnerships and Alternative Service Delivery Projects  
• Appendix 1. Strategic Context  
• Appendix 2. Summary of Related Planning Processes  

Other Links.
• Ministry of Health Services Home  
• Budget 2004 Home  
 

Resource Summary

Core Businesses 2003/04 Restated Estimates1 2004/05 Estimates 2005/06 Plan 2006/07 Plan
Operating Expenses ($000's)
Services Delivered by Partners        
Regional Health Sector Funding 6,594,096 6,495,945 6,604,952 6,961,207
Medical Services Plan 2,559,227 2,568,158 2,568,942 2,569,888
PharmaCare 738,314 830,355 926,649 1,025,319
Debt Service Costs 175,000 173,500 186,860 190,660
Amortization of Prepaid Capital Advances 135,891 136,677 152,984 166,284
  10,202,528 10,204,635 10,440,387 10,913,358
Services Delivered by Ministry        
Emergency Health Services 190,802 220,602 217,002 217,002
Health Benefit Operations 18,119 18,328 16,570 16,570
Vital Statistics 7,085 6,935 6,935 6,935
  216,006 245,865 240,507 240,507
Executive and Support Services        
Minister's Office 746 778 778 778
Stewardship and Corporate Management 111,308 107,167 103,145 103,145
  112,054 107,945 103,923 103,923
Total 10,530,588 10,558,445 10,784,817 11,257,788
FTEs 2003/04 Restated Estimates1 2004/05 Estimates 2005/06 Plan 2006/07 Plan
Full Time Equivalents (FTEs)
Services Delivered by Ministry        
Emergency Health Services 1,806 1,895 1,895 1,895
Health Benefit Operations 229 138 23 23
Vital Statistics 90 89 89 89
  2,125 2,122 2,007 2,007
Executive and Support Services        
Minister's Office 8 8 8 8
Stewardship and Corporate Management 603 655 645 638
  611 663 653 646
Total 2,736 2,785 2,660 2,653
CRF Capital Categories 2003/04 Restated Estimates 2004/05 Estimates 2005/06 Plan 2006/07 Plan
Ministry Capital Expenditures (Consolidated Revenue Fund) ($000's)
Vehicles, Specialized Equipment, Office Furniture and Equipment 8,268 8,251 8,251 8,251
Information Systems 8,363 11,355 10,665 10,515
Total 16,631 19,606 18,916 18,766
Project Type 2003/04 Restated Estimates 2004/05 Estimates 2005/06 Plan 2006/07 Plan
Consolidated Capital Plan (CCP) Capital ($000's)
Health Care Facilities 202,500 379,700 278,000 156,900
Total 202,500 379,700 278,000 156,900
Health Innovation Incentive Program 2003/04 Restated Estimates 2004/05 Estimates 2005/06 Plan 2006/07 Plan
Other Financing Transactions2 ($000's)
Receipts 2,034 2,034 2,102 1,333
Disbursements — — — —
Total Net Cash Source (Requirement) 2,034 2,034 2,102 1,333
1   Amounts have been restated, for comparative purposes only, to be consistent with Schedule A of the 2004/05 Estimates.
2   Health Innovation Incentive Program — Loans (disbursements) are no longer provided to health authorities or other health agencies. Receipts represent repayment by health authorities of the loans (disbursements) made in previous years. Administration costs are funded through the ministry's voted appropriations.

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Health Authorities Included in the Provincial Reporting Entity

The Budget Transparency and Accountability Act requires provincial budgets and financial statements to fully comply with generally accepted accounting principles (GAAP) by fiscal 2004/05. This will require the consolidation of the six health authorities into the government reporting entity. Fully consolidating the health authorities will bring their assets, liabilities, revenues and expenses into the government's budgets and financial reports.

The health authorities have been primary service delivery organizations for the public health sector for several years and many of the performance measures and targets included in the ministry's service plan are related to services delivered by the health authorities.

From government's financial perspective, the change will have a modest impact. The majority of the health authorities' revenues and a substantial portion of the funding for capital acquisitions is provided by the province in the form of grants from ministry budgets. Therefore, the net income impact of consolidation should be relatively small.

The consolidation of the health authorities will add a degree of complexity to decision making and will require closer coordination of financial processes and timelines between the ministry and the health authorities. The ministry and the health authorities will work in partnership to manage the transition.

Description 2003/20043 Forecast 2004/2005 Plan 2005/2006 Plan 2006/20074 Plan
Health Authorities and Hospital Societies — Combined Income Statement ($000's)
Total Revenue1 8,122,000 8,166,000 8,171,000 8,198,000
Total Expense2 8,244,000 8,166,000 8,171,000 8,198,000
Net Results (122,000) 0 0 0
This combined income statement includes estimates from six health authorities and six hospital societies. Numbers do not include the eliminating entries required to consolidate these agencies with the government reporting entity.
1   Revenue: Includes provincial revenue from the Ministry of Health Services, plus revenues from the federal government, co-payments (which are client contributions for accommodation in care facilities) and fees and licences.
2   Expenses: Provides for a range of health care services, including acute care and tertiary services, residential care, mental health services, home care, home support, and public health programs. The Healthcare Benefit Trust (HBT) is a health and welfare trust that administers employee benefits on behalf of participating employers (primarily health authorities and hospital societies) and is funded through employer premiums. HBT currently has an unfunded, actuarially determined liability of $260 million; of which $204 million relates to health employers benefit plans. $51 million of this is attributable to the 2003/04 fiscal year, and is included in reported 2003/04 expenses. The balance ($153 million) is attributable to prior years and will be recorded as a prior period adjustment in health authority accounts.
3   2003/04 Forecast: Health authorities and hospital societies were allowed to balance their budgets over two years (2002/03 and 2003/04). These entities achieved a net surplus of $94 million in 2002/03 which offsets a projected 2003/04 deficit (before the HBT adjustment) of $71 million. The impact of the HBT adjustment was unanticipated at the time health authority budget management plans were developed and approved and therefore is not included in the requirement to balance over two years.
4  

2006/07 Plan: 2006/07 figures are preliminary — budget management plans for 2006/07 will be submitted by health authorities early in the new fiscal year.

 

2003 First Ministers' Accord on Health Care Renewal

In 2003, the Provinces, Territories and Federal Government agreed to a First Ministers' Accord on Health Care Renewal. Additional funding under the Accord is intended to provide investments in primary care, home care and catastrophic drug coverage, and also includes funding for specialized equipment and training to improve access to diagnostic services. The ministry and its health authority partners will use this funding to support our strategic priorities in these areas, as outlined in this service plan, and will publicly report results through the ministry's Annual Service Plan Report and other avenues.

The table below identifies the allocation of the initial $1.3 billion in federal funding increases to B.C. resulting from the Health Accord. B.C.'s estimated $260 million share of the recently announced new federal funding of $2 billion has not been included in this table pending confirmation of amounts and accounting treatment.

  Restated 2003/04 1 2004/05 2005/06 Total
Allocation of Federal Dollars ($Millions)
PharmaCare 129.4 190.2 286.5 606.1
Regional Health Sector 130.0 138.0 239.0 507.0
Equipment 41.0 70.0 89.1 200.1
Total — Cumulative 300.4 398.2 614.6 1,313.2

1   Numbers restated to reflect revised spending plan.

 

  
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