Care homes cope with budget deficits

Non-profit care homes for Manitoba seniors are coping with large budget deficits, while making do with aging buildings, due to chronic government underfunding, the Free Press has been told.

The cost of everything from staff salaries and food to nursing supplies and property taxes has soared since 2008, the last time non-profit long-term care homes received an increase to base operational funding.

“There’s basically been this freeze with no increases,” said Gary Ledoux, CEO of Bethania Group, a faith-based organization that operates the Bethania Mennonite and Pembina Place care homes in Winnipeg.

MIKE DEAL / FREE PRESS
Bethania Mennonite Personal Care Home at 1045 Concordia Avenue.
MIKE DEAL / FREE PRESS
Bethania Mennonite Personal Care Home at 1045 Concordia Avenue.

“We do the best we can to manage within budget, but there comes a time when you just can’t afford it anymore. A lot of us are running deficits.”

In the non-profit sector, there is a strong belief long-term care was not prioritized or became an afterthought under previous NDP and Progressive Conservative governments.

“We’re hopeful this new government will listen and provide some increased funding, but also with inflationary factors,” said Ledoux, noting Manitoba’s senior population is growing.

Sue Vovchuk, executive director of the Long Term & Continuing Care Association of Manitoba, echoed that call.

“We have to be seen as a critical component in the health-care system,” she said. “We have to keep Manitoba seniors front and centre.”

Provincial funding is distributed to non-profit care homes via regional health authorities. Facilities didn’t receive funding letters for 2023-24 until the end of the fiscal year, said Vovchuk and Ledoux.

“That is extraordinarily late,” said Vovchuk. “(Homes) went all year not knowing what they were going to get for funding.”

Under the existing funding formula, which uses a median rate, some homes may have to pay back some of the income-based fees collected from residents.

“If you collect over the median rate, you have to pay that back,” Vovchuk added. “The residential charge is meant to be revenue neutral.”

The LTCAM and the Manitoba Association of Residential & Community Care Homes for Everyone have called on the province to boost operating and capital funding.

Vovchuk said an operating model that is indexed to inflation is needed.

Health, Seniors and Long-Term Care Minister Uzoma Asagwara wouldn’t say Friday if the funding model will change.

“Our eyes are always to how we can improve, and how we can work with long-term care operators and providers to improve the care that seniors and those that are living in long-term care homes receive,” the minister said.

Asagwara repeated the province’s pledge to add beds and staff.

The province is conducting a “comprehensive” analysis of the current state of the long-term care system.

In 2024-25, the province has budgeted money for more hours of direct care for seniors in long-term care. It also has promised to build four new care homes — two in Winnipeg and two in rural Manitoba.

Advocates have called for additional capital funding to modernize facilities.

“A lot of these homes are 50 years old. A huge amount of capital work needs to take place,” said Vovchuk.

Ledoux said Bethania Mennonite’s heating and cooling system constantly breaks down. Money that could go toward other things is spent on repairs instead. The cost of buying and installing a new system is too high.

Every month, Bethania Group has to make difficult decisions on where and where not to spend, without taking money from residents’ care, food or staffing levels, said Ledoux.

He said the non-profit is always looking for savings. It switched to LED lighting, for example, to lower utility costs. Bethania Group has a charitable foundation to help cover some costs.

Asagwara said the government is “constantly” assessing and reviewing infrastructure and opportunities to make improvements.

A WRHA spokesperson said there is no pause on capital projects.

“The WRHA is undertaking a strategic development master capital plan which will help identify, on an at-risk basis, which infrastructure is in need of renewal in the broader Winnipeg Health Region,” the spokesperson wrote in an email. “Any other urgent infrastructure needs continue to be addressed on a case-by-case basis.”

chris.kitching@freepress.mb.ca

Chris Kitching

Chris Kitching
Reporter

As a general assignment reporter, Chris covers a little bit of everything for the Free Press.

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