Proposed Legislation Opens Door to Further Privatization in the Delivery of Long Term Care

Proposed Legislation Opens Door to Further Privation in the Delivery of Long Term Care

TORONTO (Jan. 30, 2006) – The McGuinty government’s proposed legislation to integrate health services unfairly discriminates against not-for-profit providers of care. If passed, Bill 36 opens the door for further erosion of not-for-profit care and increased privatization of service delivery.

“For a government that once was resolute and vocal in its opposition to private, for-profit health care, Bill 36 appears to be a fundamental policy reversal,” Donna Rubin, CEO of the Ontario Association of Non-Profit Homes and Services for Seniors (OANHSS), told the Standing Committee on Social Policy at Queen’s Park today.

Specifically, Section 28 in Bill 36 would give the Minister of Health and Long-Term Care sweeping powers over not-for-profit providers, including the ability to force mergers and even shut down organizations. However, the Bill does not give the Minister similar authority to make changes affecting the operations of for-profit providers.

“This clearly is open discrimination, and if passed into law, will give unfair advantage to the for-profit operators of privately-owned nursing homes,” Rubin said. “We can’t fathom how the public interest could possibly be served by exempting for-profit organizations in Section 28. If for-profit providers choose to operate in the publicly-funded health care system, they should be under the same rules as everyone else,” added Rubin.

OANHSS is calling for Section 28 to be either removed from the Bill or made to apply to all providers so that there is no discrimination, long term care delivery does not become dominated by private operators, and consumers continue to have choice.

For-profit providers now operate more long term care beds in Ontario than not-for-profit providers. This preponderance of for-profit beds is a fairly recent development, with the shift occurring over the last six years when more than 65 per cent of the 20,000 new beds were awarded to the for-profit sector. Bill 36 could further tilt the balance and reduce consumer choice.

Not-for-profit long term care providers have a long history of leadership in providing integrated services. Often they offer a continuum of services for people with varying levels of need. For example, these homes often function as service hubs for day programs and for meals-on-wheels for seniors living in the community.

As well, not-for-profit homes have a long history of serving their communities. They re-invest their surplus dollars to enhance and expand the level of service provided to residents. Additionally, not-for-profits typically contribute additional resources beyond what the province provides, topping up provincial funding with charitable donations and municipal transfers.

Not-for-profits are deeply rooted in the cultural, religious and geographic communities they serve. They are actively supported by local volunteers, and they are sensitive to local needs.

“For all these reasons, we believe the McGuinty government should be doing everything it can to ensure that the not-for-profit sector is protected and supported. Yet here it is proposing to give unfair advantage to for-profit operators,” Rubin noted.

OANHSS is the provincial association representing not-for-profit providers of long term care, services and housing for seniors. Members include municipal and charitable long term care homes, non-profit nursing homes, seniors’ housing projects and community services agencies. Member organizations operate over 26,000 long term care beds and over 5,000 seniors’ housing units across the province.

– 30 –

For further information, contact:

Debbie Humphreys

OANHSS

905-851-8821 x 233

C	ontact OANHSS

Ontario Association of Non-Profit Homes & Services for Seniors
7050 Weston Road, Suite 700, Woodbridge, Ontario L4L 8G7
(P) 905-851-8821
(F) 905-851-0744

OANHSS Privacy Policy

OANHSS members include not-for-profit providers of long term care, services and housing for seniors in Ontario.
Members include municipal and charitable long term care homes, non-profit nursing homes,
seniors' housing projects and community service agencies.