HEALTH DISTRICTS RECEIVE $54 MILLION

Released on March 1, 2001

Health districts will soon receive $54 million in provincial government

funding. The funding was announced in January to help cover projected health

district operating deficits for 2000-01.



Twenty-five of 32 districts were projecting deficits. It is expected this $54

million will cover all of those deficits.



Saskatchewan Health has had discussions with all 25 districts to establish

final spending targets for the fiscal year ending March 31, 2001. Based on

those discussions, the allocation of the $54 million was finalized (see

attached backgrounder).



"Districts have generally done a good job of managing under some very difficult

conditions this year," Health Minister John Nilson said. "We knew when we

asked districts to maintain services pending the work of the Fyke Commission

this would create additional pressure on their budgets. That is why we are

providing this additional funding.



"The health system is facing increasing pressures due to growing demand for

services, rising costs, new technologies and drugs," Nilson said.



He added the provincial government and districts will have to take a careful

look at the appropriate balance between meeting the demand for health care

services and establishing a sustainable level of spending in the coming year.



"As we develop our budgets and respond to the Fyke Commission's findings, we

will need to work together to look at how and where we deliver health services

in our province to best meet health needs while living within our means,"

Nilson said.



-30-



For more information, contact:



Rikki Bote

Communications Branch

Saskatchewan Health

Regina

Phone: (306) 787-4083