MANITOULIN—Manitoulin Health Centre (MHC) is projecting a significant deficit in its budget.

“Like most hospitals across Ontario, we are facing financial pressures that have resulted in a projected deficit this year,” stated Paula Fields, president and chief executive officer (CEO) of MHC, after a hospital board meeting last week.

“We are looking at a deficit, something that everyone is hearing among hospitals all over the province,” said Ms. Fields. “There is a lot of uncertainty in funding of hospitals.” 

Ms. Fields explained, “the deficit as of October 31, 2025 is $1.15 million. Contributing to this deficit includes historical one-time funding seen in prior years (from the provincial government) not being funded this year. Previously, the hospital received structural adjustments funding to offset pressures caused from inflation, arbitration awards and simply a lack of appropriate base funding. These challenges have not gone away and now leaves the hospital in an impossible task to balance.”

She said there is a lot of uncertainty around government funding, and the ministry is working across the province with different committees and reviews being set up. 

“With no increase to funding this fiscal year, the deficit for March 31, 2026 is forecasted to get worse,” explained Ms. Fields. “While the hospital has drastically reduced costs for agency nurses, right-sizing the funding envelope is still needed.”  

Ms. Fields said although a deficit is projected, “I want to assure our community that we are doing everything possible to protect and preserve rural healthcare. Our team continues to work closely with Ontario Health, the Ministry of Health and the Ontario Hospital Association, participating in both regional and provincial meetings focused on stabilization and sustainability.”

“Our board of directors and senior leadership are strong advocates for maintaining access to care close to home, and we are actively pressing for solutions that reflect the unique realities of rural and Northern communities,” said Ms. Fields. “At this time, there are no service reductions or closures planned. Our priority remains clear: to ensure that the people we serve continue to have dependable, high-quality hospital services in their own community.”