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HEALTHCARE REFORM IN
SASKATCHEWAN IN THE 1990s:
LESSONS FROM THE MINISTER OF HEALTH


                                                     Louise Simard
                    Minister of Health, Saskatchewan (1991 – 1995)
THE CONTEXT
• 1962: Saskatchewan
  birthplace of medicare in
  Canada
  – publicly
    funded/administered,
    universal access




                       2
THE CONTEXT
• Federal government was financing about 55%
  of healthcare costs; contributions reduced in
  late 70s/early 80s
• 1984: Canada Health Act
• 1991: A perfect storm for Saskatchewan




                      3
THE CONTEXT
• First priority: get deficit under control
• Second priority: revamp healthcare
   – Stakeholders recognized need
   – Many commissions (e.g. Murray Commission)
      • Wellness Model




                         4
FORMING GOVERNMENT
• Oct. 1991: Social democrats form government
  – dramatic action taken, reverberates through
    province
  – large “umbrella boards” in Saskatoon and Regina




                        5
MANAGING REFORM
• Over 400 boards collapsed into 30
• Strategic approach to community involvement
  – public consultation and stakeholder buy-in
    essential
• Social determinants lens
• Provincial Health Council, Utilization
  Commission established


                        6
MANAGING REFORM
• Two competing goals
  – deficit reduction, not reform per se
  – focus on revamping healthcare system and
    population health




• Announcements of hospital conversions and
  cuts to services posed political challenges

                       7
TWO STAGES OF THE REFORM PROCESS
1. Reorganization of the governance and
   delivery structures of the health system
2. Reform of service, program and delivery
   methods
   –   long term and evolutionary in nature
   –   primary health care, population health goals
   –   community involvement, control over system
   –   increased coordination, integration of services



                             8
CUTS TO SERVICES
• Early 1992: provincial government set stage
  for significant cuts, 3.3%
  – community-based services spared
  – hospital, physician, optometric, chiropractic and
    prescription drug funding decreased
• 3.3% cut felt more like a 10% cut, since growth
  in healthcare spending had been escalating
  annually by at least 7%


                         9
HOSPITAL CONVERSIONS
• 1993: Government sought further savings
  – closure (conversion) of acute care beds in 52 rural
    hospitals
     • converted to health centres, which would deliver more
       appropriate services
     • even after conversions, beds per capita higher than in
       most provinces




                           10
HOSPITAL CONVERSIONS
• public outcry and disapproval of new policies
  – Important to
     • face the people and explain policies
     • set deadlines
     • develop strategy to cope
  – Implementation of guidelines, first-responder
    system, labour adjustment strategy, rural
    initiatives fund, trial runs



                            11
DISTRICTS
• Aug. 1993: deadline to establish District and
  set requirements
  – “A Guide to Core Services for Saskatchewan Health
    Districts”
     • outlined basic services expected to be provide in the short term,
       and services that would eventually be transferred from
       government
  – all 30 districts established and rural hospitals converted as
    planned
     • day of conversions, non-issue in media
     • lower mortality


                                12
MORE REFORM INITIATIVES
• Over the next two years more and more
  initiatives were undertaken to accommodate
  health reform




                     13
HEALTH HUMAN RESOURCES
• Restructured provincial health sector bargaining
  units (The Dorsey Commission)
  – 500 bargaining units and 21 collective agreements
    in health sector prior to reform
  – 35 bargaining units and 6 collective agreements in
    health sector after reform
• Labour reorganization removed the final barrier
  to integrated health services delivery


                        14
REFLECTIONS
• Ingredients for successful change management
  • reform needs a champion           • vision needs to be
  • importance of setting the scene     communicated to the public
  • reform needs to be launched       • clear deadlines for
    early in a government’s             accomplishing the various steps
    mandate                           • public opinion leaders part of
  • research must support the           the process
    change                            • the plan needs to be flexible
  • a vision and the goals clearly    • critical management of issues
    defined                             as they arise or anticipated and
  • the vision needs to offer hope      dealt with before they become
  • stakeholder involvement in the      an issue;
    development of the vision and     • consistency of the message
    goals                               needs to be maintained.


                               15
REFLECTIONS
• 30 years later, reform structure in place,
  but still evolving
• Review of the reform (the Fyke
  Commission)
  – less health regions,
  another round of restructuring
• Population health focus
  – improved, but much more to be done


                        16
REFLECTIONS
• Patient First Review
  (the Dagnone
  Commission)
  – focus on patient-
    and family-centred
    care




                         17
HEALTH OUTCOMES
• Perceived very good or excellent health status
  of SK people stable from 1994 to 2007
• Infant mortality rates declined in SK and
  Canada from 1991 to 2007
• Life expectancy at birth and at age 65 have
  been steadily increasing in SK
  – Rates are similar in SK and Canada, with slightly
    higher rates in Canada


                         18
RESOURCE USE
• While the number of physician visits dropped
  by 17% between 1991-92 and 2000-02, the
  number of prescriptions filled increased by
  31%
• In 1999, health spending in SK below national
  average ($2,907 versus $2936)
  – spent less on hospitals, drugs, doctors and other
    professionals, but more on long-term care and
    other health expenditures

                         19
QUESTIONS?

   20

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Louise Simard: Healthcare reform in Saskatchewan in the 1990s

  • 1. HEALTHCARE REFORM IN SASKATCHEWAN IN THE 1990s: LESSONS FROM THE MINISTER OF HEALTH Louise Simard Minister of Health, Saskatchewan (1991 – 1995)
  • 2. THE CONTEXT • 1962: Saskatchewan birthplace of medicare in Canada – publicly funded/administered, universal access 2
  • 3. THE CONTEXT • Federal government was financing about 55% of healthcare costs; contributions reduced in late 70s/early 80s • 1984: Canada Health Act • 1991: A perfect storm for Saskatchewan 3
  • 4. THE CONTEXT • First priority: get deficit under control • Second priority: revamp healthcare – Stakeholders recognized need – Many commissions (e.g. Murray Commission) • Wellness Model 4
  • 5. FORMING GOVERNMENT • Oct. 1991: Social democrats form government – dramatic action taken, reverberates through province – large “umbrella boards” in Saskatoon and Regina 5
  • 6. MANAGING REFORM • Over 400 boards collapsed into 30 • Strategic approach to community involvement – public consultation and stakeholder buy-in essential • Social determinants lens • Provincial Health Council, Utilization Commission established 6
  • 7. MANAGING REFORM • Two competing goals – deficit reduction, not reform per se – focus on revamping healthcare system and population health • Announcements of hospital conversions and cuts to services posed political challenges 7
  • 8. TWO STAGES OF THE REFORM PROCESS 1. Reorganization of the governance and delivery structures of the health system 2. Reform of service, program and delivery methods – long term and evolutionary in nature – primary health care, population health goals – community involvement, control over system – increased coordination, integration of services 8
  • 9. CUTS TO SERVICES • Early 1992: provincial government set stage for significant cuts, 3.3% – community-based services spared – hospital, physician, optometric, chiropractic and prescription drug funding decreased • 3.3% cut felt more like a 10% cut, since growth in healthcare spending had been escalating annually by at least 7% 9
  • 10. HOSPITAL CONVERSIONS • 1993: Government sought further savings – closure (conversion) of acute care beds in 52 rural hospitals • converted to health centres, which would deliver more appropriate services • even after conversions, beds per capita higher than in most provinces 10
  • 11. HOSPITAL CONVERSIONS • public outcry and disapproval of new policies – Important to • face the people and explain policies • set deadlines • develop strategy to cope – Implementation of guidelines, first-responder system, labour adjustment strategy, rural initiatives fund, trial runs 11
  • 12. DISTRICTS • Aug. 1993: deadline to establish District and set requirements – “A Guide to Core Services for Saskatchewan Health Districts” • outlined basic services expected to be provide in the short term, and services that would eventually be transferred from government – all 30 districts established and rural hospitals converted as planned • day of conversions, non-issue in media • lower mortality 12
  • 13. MORE REFORM INITIATIVES • Over the next two years more and more initiatives were undertaken to accommodate health reform 13
  • 14. HEALTH HUMAN RESOURCES • Restructured provincial health sector bargaining units (The Dorsey Commission) – 500 bargaining units and 21 collective agreements in health sector prior to reform – 35 bargaining units and 6 collective agreements in health sector after reform • Labour reorganization removed the final barrier to integrated health services delivery 14
  • 15. REFLECTIONS • Ingredients for successful change management • reform needs a champion • vision needs to be • importance of setting the scene communicated to the public • reform needs to be launched • clear deadlines for early in a government’s accomplishing the various steps mandate • public opinion leaders part of • research must support the the process change • the plan needs to be flexible • a vision and the goals clearly • critical management of issues defined as they arise or anticipated and • the vision needs to offer hope dealt with before they become • stakeholder involvement in the an issue; development of the vision and • consistency of the message goals needs to be maintained. 15
  • 16. REFLECTIONS • 30 years later, reform structure in place, but still evolving • Review of the reform (the Fyke Commission) – less health regions, another round of restructuring • Population health focus – improved, but much more to be done 16
  • 17. REFLECTIONS • Patient First Review (the Dagnone Commission) – focus on patient- and family-centred care 17
  • 18. HEALTH OUTCOMES • Perceived very good or excellent health status of SK people stable from 1994 to 2007 • Infant mortality rates declined in SK and Canada from 1991 to 2007 • Life expectancy at birth and at age 65 have been steadily increasing in SK – Rates are similar in SK and Canada, with slightly higher rates in Canada 18
  • 19. RESOURCE USE • While the number of physician visits dropped by 17% between 1991-92 and 2000-02, the number of prescriptions filled increased by 31% • In 1999, health spending in SK below national average ($2,907 versus $2936) – spent less on hospitals, drugs, doctors and other professionals, but more on long-term care and other health expenditures 19