Health spending in N.B. not exempt from cuts, Holt says

New Brunswick Premier Susan Holt says health care won’t be exempt from her efforts to cut spending — even though her health minister says big spending increases will be unavoidable in coming years.

Holt and John Dornan were sitting side-by-side when they made the comments after the signing of a new four-year pay agreement with the province’s doctors.

The contract, with financial incentives for doctors who agree to work in collaborative care clinics, is costing taxpayers $176 million this year. 

Overall, health-care spending is $432.5 million over budget this year, with the agreement responsible for 40 per cent of  that increase.

Holt has asked all government departments to look for how to reduce spending by 10 per cent to get a ballooning budget deficit under control.

She said health care is not exempt from that effort.

“No, every department was asked to save, to do things differently,” she said.

But she suggested the spending restraint in health may happen over time.

“There will be ongoing work happening between the team at the Department of Health and the Regional Health Authorities to make sure every service we provide is maximized for its efficiency and optimized. That’s work they’ll be continuing to do in the years ahead.” 

Moments later, Dornan said future spending increases will be “unavoidable.”

Total spending on health care this year is on track to be 10.7 per cent higher than last year.

Dornan didn’t answer directly about whether that rate of increase is sustainable year after year.

“That’s called inflation. Every year there will be an increase in our costs, our physician incomes, our nurses’ incomes, our health care providers’ incomes,” he said.

“Inflation will mean that on a regular basis there will be an increase in cost to our system.”