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Home»Thunder Bay»Ontario Hospitals Facing Over $400 Million in Deficits
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Thunder Bay

Ontario Hospitals Facing Over $400 Million in Deficits

August 5, 20263 Mins Read
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Ontario Hospitals Facing Over 0 Million in Deficits
CUPE report claims Ontario hospital deficits in excess of $400 million
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The union that represents many hospital workers in Ontario is highlighting serious issues within their facilities.

A recent report from the Canadian Union of Public Employees’ Ontario Council of Hospital Unions indicates that the total deficits for hospitals across Ontario have surpassed $400 million in 2025.

It points out that funding for everyday costs like payroll and medical supplies has dropped dramatically from $2 billion in 2020 to a shortfall of $280 million by the end of 2025.

According to the report, numerous hospitals are borrowing money just to stay afloat.

Researcher Doug Allan mentions that job cuts have also been implemented as a cost-saving measure.

“Our estimate, which we believe is extremely conservative, is that there have been over 1,300 eliminations of jobs in Ontario hospitals since September of 2025, when the government required hospitals to come up with new plans for cuts, the hospital sector stabilization plans,” says Allan.

“At a time when we need to increase capacity, we’re seeing job cuts. We think that is now getting worse.”

The union argues that intentional underfunding, lack of staff, and privatization of services have led to emergency room closures, longer wait times, and diminished quality of care for patients.

The province has promised annual increases close to 4% in hospital operating budgets.

However, the Council of Hospital Unions claims this isn’t enough to match rising costs or meet patients’ complex needs.

“We have an aging population that drives a significant increase,” says Allan.

“We’ve also had very significant population growth in recent years. We also just see societies become richer, that people make rational decisions and want the care that can actually let them live in good health or live longer.”

He adds that Ontario is witnessing an uptick in individuals facing mental health challenges and younger people with chronic illnesses putting additional strain on the healthcare system.

CUPE/OCHU President Michael Hurley states hospitals require annual increases of 6% just to keep services running smoothly.

These pressures relate back to demographic shifts. The government faces a choice: it can either build capacity like past administrations did when baby boomers were born so children could attend school or ignore the problem,” says Hurley.

“What this government is doing is even worse than that. It says it will deal with it. It says it will find the resources. But in fact, the problem doubles and then it solves it by not reporting.”

Health Minister Sylvia Jones defends her government’s dedication to supporting hospitals.

She asserts they’ve been making essential investments.

“We are building through many campaigns, expansions, new hospitals, an additional 3,000 net new beds. So we’re making the investments on the capital side,” says Jones.

“We’re also making the investment on health human resources because you can’t open beds if you’re not going to have clinicians to serve.”

Jones explains they are currently engaged in a three-year plan aimed at helping hospitals achieve balanced budgets.

She mentions regional tables are collaborating on best practices and innovations which can be shared throughout Ontario.

Randy Thoms is a veteran news broadcaster with over 40 years’ experience. He is based in Fort Frances and covers stories across northwestern Ontario. Contact Randy at thoms. randy@radioabl. ca.

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