Officials at the Simcoe Muskoka District Health Unit are sounding the alarm that growing public health issues are outstripping the frozen provincial funding.
During a city council meeting on Monday morning, representatives from the Simcoe Muskoka District Health Unit (SMDHU) shared with council members that public health challenges are intensifying in the area, even though the province has limited funding increases to just one percent for three consecutive years.
With rising concerns around infectious diseases, mental health effects, cost-of-living challenges, and health risks related to climate change all escalating, officials expressed that the health unit is more stretched than it has been in ten years.
Dr. Lisa Simon, who recently became the new medical officer of health and CEO of the unit, made her first appearance at Orillia city hall since taking on her role earlier this fall. She was accompanied by Karen Ellis-Scharfenberg, vice-president of corporate services and chief financial officer.
Simon explained the core mission guiding public health units throughout Ontario: preventing disease spread, promoting community wellness, and responding to new threats as they arise.
This work follows guidelines set by the Ontario Public Health Standards and receives funding through a mix of provincial and municipal sources where municipalities like Orillia cover about 25 percent of mandatory public health program costs. Last year, Orillia contributed $529,000; it’s uncertain how much that will be for 2026.
As she reviewed SMDHU’s strategic plan for 2024-25, which is close to being finalized, Simon pointed out multiple areas where they’ve improved their responses.
She mentioned enhancements in readiness for surges during respiratory seasons, advancements in emergency preparedness efforts, and expanded training within the agency after a significant internal reorganization earlier this year. This restructuring marked the largest change since 2005 when two previous health units merged to form SMDHU.
Simon also noted strengthened collaborations with Indigenous communities and partners across Simcoe and Muskoka while continuing to advocate for increased provincial investment following many years of inadequate funding.
Ellis-Scharfenberg then provided insights into their financial situation. She reiterated that provinces have indicated only a one percent increase for budget year 2026-the same rate as seen in 2024 and 2025-which falls short of covering rising expenses.
The bulk of SMDHU’s budget goes toward salaries which typically see annual increases between two and 2.5 percent. Non-salary costs like technology upgrades, cybersecurity insurance, and testing artificial intelligence tools for efficiency have also escalated faster than inflation rates.
Ellis-Scharfenberg described this situation as leading to a gradual decline in workforce capacity over nearly a decade.
From 2014 to 2024, SMDHU’s cost-shared programs lost thirty full-time equivalent roles. While about twenty new positions were funded by the province recently for Ontario Seniors Dental Care Program initiatives, she emphasized those roles won’t fill gaps in essential public-health tasks like communicable disease control or outbreak management among others.
Both Simon and Ellis-Scharfenberg highlighted ongoing pressures including rising activity from infectious diseases as well as mental health impacts stemming from substance use issues-alongside affordability-related risks associated with healthcare-and climate change effects too. The complexity and volume of required public-health work keep increasing despite stagnant funding levels.
In light of these challenges , the health unit has reassigned staff towards communicable disease initiatives along with immunization programs while streamlining management structures wherever possible. Additionally, both Simon & Ellis-Scharfenberg warned that without fresh sustained investments from provincial authorities, their capacity to meet established standards will remain under threat
Council members learned about lingering operational repercussions resulting from COVID-19. Mayor Don Mc Isaac questioned whether decreased cases had lessened financial strains on their budget.
Ellis-Scharfenberg clarified that while costs tied specifically to COVID-19 were reimbursed during peak periods, a shift occurred whereby seasonal respiratory illnesses now bring additional demands along with long-term care outbreaks plus managing RSV which has gained prominence within respiratory season planning.
“There really isn’t a COVID dividend,” explained Ellis-Scharfenberg while stressing how emerging infections continue affecting staffing levels alongside response capabilities. The focus remains on addressing these evolving threats whilst pursuing efficiencies through quality improvement projects alongside initial AI implementations.
In recent years, the levy charged by SMDHU hasn’t fluctuated much, and their board plans finalizing its budget ahead February when updates regarding fourth-quarter provincial funding become available. Municipal contributions depend upon MPAC assessments coupled with population figures.
To wrap up her presentation, simon expressed gratitude toward Orillia’s consistent backing while emphasizing just how vital public healthcare is-from school vaccinations & food inspections down through harm reduction programs prenatal visits&outbreak control measures across hospitals&long term care facilities
Council will evaluate requests made not only by simcoe county but also Couchiching OPP detachment board as part its considerations relating upcoming budgets set forth within next fiscal period
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During monday meeting, simon praised councillor ralph cipolla citing his long service upon various boards working alongside them noting his support always comes through consistently aiding organization tremendously
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