LHSC ending unlimited mental health benefits saying popularity made it too expensive

London Health Sciences Centre (LHSC) is getting rid of unlimited mental health benefits for staff, blaming ballooning costs and former administrators for implementing it without proper due diligence or oversight.

The change takes effect Jan. 1, 2026, and has been met with disappointment and frustration from some employees, who say LHSC is taking away a “lifeline," and making staff pay for others’ poor decision-making.

LHSC began voluntarily offering unlimited mental health care benefits in January 2024 to benefit-enrolled unionized and non-unionized staff, along with dependents and retirees, saying it was prioritizing mental and physical wellbeing

Two years on, the man tasked with overhauling LHSC argues it was just one of several bad decisions made by those no longer in charge at southwestern Ontario's largest hospital network.

“Unfortunately, there was not the proper due diligence done back then with respect to the ramifications of not only costs to the organization, but to actual employees in premium costs,” said David Musyj, LHSC's provincially-appointed supervisor, on Thursday.

“It just was not viable moving forward, so we went to a capped number that’s more consistent with what other hospitals in the province provide, and fixed a mistake that was made two years ago.”

Musyj was appointed supervisor in September 2024, after months as acting president and CEO, with the goal of fixing an organization beset with years of instability, administrative dysfunction, and a growing deficit. He’ll remain for as long as he's needed, he said this summer.

The new caps return to what had been in place prior, said Musyj, who outlined the changes in an all-staff email on Wednesday, alongside Julia Marchesan, VP of people and employee experience. 

Non-unionized staff will see mental health benefits limited up to $1,500 per year, while unionized staff will return to per-person limits in collective agreements — $3,000 for the Professional Association of Residents of Ontario, $1,000 for Unifor, and $400 for the Canadian Office and Professional Employees Union.

The Ontario Nurses Association already had unlimited mental health in their contract, while caps for Ontario Public Service Employees Union, and Professional Institute Of The Public Service Of Canada members will match non-union staff.

According to Musyj, only 20 per cent of staff utilized unlimited benefits, and claims totalled more than $3.1 million in 2024, a number expected to surpass $5 million this year. Asked why, he noted immediate family were able to use the benefits.

“The 20 per cent has stayed pretty stagnant. It's the numbers in the 20 per cent that are going up,” he said. He acknowledged mental health was an issue in healthcare, but said there were other programs and services available to workers.

“It's a very expensive approach at a time where we cannot afford, and neither can the staff who aren't using it, when the rest of the benefits are going up by 10 per cent a year.” Premiums are set to increase again in April, and will likely take a year to stabilize, he said.

Several employees made their frustrations known during a Microsoft Teams forum with Musyj on Thursday.