Resource Summary

Core Businesses	2004/05 Restated Estimates1	2005/06 Estimates	2006/07 Plan	2007/08 Plan
Operating Expenses ($000)
Services Delivered by Partners
Regional Health Sector Funding	6,541,996	7,239,659	7,495,714	7,582,557
Medical Services Plan	2,521,768	2,627,065	2,642,479	2,642,479
PharmaCare	830,355	889,547	982,178	1,084,214
Debt Service Costs	173,500	169,500	183,200	194,700
Amortization of Prepaid Capital   Advances	136,677	152,908	169,635	179,202
Health Benefit Operations	20,257	28,213	28,448	28,581
	10,224,553	11,106,892	11,501,654	11,711,733
Services Delivered by Ministry
Emergency Health Services	220,602	253,523	259,572	268,255
Vital Statistics	6,742	6,786	6,831	6,831
	227,344	260,309	266,403	275,086
Executive and Support Services
Minister's Office	778	567	498	498
Stewardship and Corporate   Management	92,742	102,730	101,852	101,900
	93,520	103,297	102,350	102,398
Total	10,545,417	11,470,498	11,870,407	12,089,217
Full-time Equivalents (FTEs)
Services Delivered by Partners
Health Benefit Operations	115	—	—	—
Services Delivered by Ministry
Emergency Health Services	1,895	1,999	2,051	2,103
Vital Statistics	89	85	85	85
	1,984	2,084	2,136	2,188
Executive and Support Services
Minister's Office	9	6	6	6
Stewardship and Corporate   Management	677	680	673	673
	686	686	679	679
Total	2,785	2,770	2,815	2,867
CRF Capital Categories	2004/05 Restated Estimates1	2005/06 Estimates	2006/07 Plan	2007/08 Plan
Ministry Capital Expenditures (Consolidated Revenue Fund) ($000)
Vehicles, Specialized Equipment, Tenant Improvements, Office Furniture and Equipment	8,251	11,425	13,705	6,105
Information systems	11,355	49,125	45,470	35,925
Total	19,606	60,550	59,175	42,030
Capital Plan ($000)
Health Care Facilities	379,7002	280,000	240,000	215,000
Total	379,700	280,000	240,000	215,000
Other Financing Transactions3 ($000)
Receipts — Health Innovation Incentive Program	2,034	769	—	—
Disbursements — Health Innovation Incentive Program	—	—	—	—
Total	2,034	769

Health Authorities Included in the Provincial Reporting Entity

As required under the Budget Transparency and Accountability Act, British Columbia's six health authorities are included in the government reporting entity. 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. The majority of the health authorities' revenues and a substantial portion of the funding for capital acquisitions are provided by the province in the form of grants from ministry budgets.

First Ministers' Agreement — 2004

In September 2004, the Provinces, Territories and Federal Government agreed to a Ten Year Plan to Strengthen Health Care. As a result of this agreement, British Columbia expects to receive a total of $5.4 billion in new federal health funding over the next 10 years.

The First Ministers agreed the top priority for these funds is to improve access to care and reduce wait times where they are longer than medically acceptable. Although every jurisdiction will be responsible for establishing its own priorities across the continuum of health services provided to their citizens, the First Ministers also agreed that cancer treatment, heart surgeries, diagnostic imaging, joint replacement and sight restoration services were important priority areas to be considered. First Ministers also recognized that improving access to care will require cooperation among governments, the participation of health care providers and patients, and strategic investment in such areas as:

• increasing the supply of health professionals (e.g., doctors, nurses, and pharmacists);
• enhancing primary care;
• delivering effective community and home-based services; and
• effective health promotion, disease prevention and public health services.

In addition, First Ministers agreed the implementation of a national pharmaceutical strategy would improve access for all Canadians to important classes of drugs while providing opportunities to take advantage of economies of scale and initiatives that would improve prescribing and minimize adverse events related to drugs.

The Ministry of Health service plan objectives and strategies reflect the commitments and priorities of the First Ministers. Strategic investments in priority areas across the continuum of health services will be a highlight of our next three years. Examples of areas in which the ministry and health authorities will be working to improve access and services beyond the five key First Minister priority areas include:

• public health and health promotion;
• youth addictions services;
• early screening of children for key health problems; and
• increased options for frail seniors in the assisted living and residential care sector.

This increase in capacity will build on the significant success in enhancing access that has already occurred over the last four years of health system redesign in British Columbia.

The new federal funding commitment, which over 10 years represents approximately four per cent of the expected spending on health services, cannot eliminate the challenges we face in making the health system sustainable over the long-term. Redesigning clinical service delivery models, in every part of our system, to allow improved quality and more capacity within the resources available will be our challenge over the coming three years. We have the advantage of an efficient, responsive health sector that welcomes the challenge of improving value for the citizens of British Columbia.

The following table summarizes the operating funding British Columbia will receive under this agreement:

Description	2004/05	2005/06	2006/07	2007/08	2008/09	2009/10	2010/11 – 2013/14
Can. Health Transfer (one time)	131,000	262,000
Home Care/ Catastrophic Drugs		66,000	—	—
Canada Health Transfer		—	295,000	277,000	322,000	362,000	2,889,000
Wait Times Reduction	559,900	—	—	—	—	33,000	132,000
Deferral of 2004/05 funding	(690,900)	116,000	228,000	267,000	79,900	—
Total	—	444,000	523,000	544,000	401,900	395,000	3,021,000

Spending the $559.9 million Wait Times Reduction funding received in 2004/05, plus the $131 million Canada Health Transfer funding, was meant to occur over the five years ending 2008/09. Instead, spending from both sources of funds was deferred one year, and will now be spread over four years, still ending in 2008/09.

In addition to the operating funding discussed above, the First Ministers' agreement will provide B.C. with an additional $66 million in Medical Equipment Funding in 2004/05. The federal government provided B.C. with $200 million in Medical Equipment Funding in 2002/03, and that money is being spent over the three years ending 2005/06. Accordingly, the $66 million from the First Ministers' agreement will be deferred to 2006/07 and 2007/08, as follows:

This funding will be used to acquire equipment that improves patient care and workplace health, such as CT and MRI scanners, anaesthetic machines, laboratory equipment, and patient beds and lifts.