Private CHSLDs: establishments are suffering financially

Private long-term care facilities (CHSLD) under contract will soon reach their breaking point.

Their agreement with the government does not cover the rapid increase in expenses and if nothing is done by March 31, the establishments will suffer financially.

A meeting that was planned with the Minister responsible for Seniors last week was postponed until mid-March, when parliamentary work resumes.

For the general director of the Association of Private Contracted Establishments (AEPC), Annick Lavoie, time is running out and there is an urgent need to act. 

“It’s stressful, because after March 31, the institutions will be in the red,” she said in an interview with The Canadian Press on Tuesday, where she expressed her concern. “The notion of urgency may not be the same for everyone, and now, if we tell you this, if we are sounding the alarm, it is because we need it.”

The organization had recently asked for special funding of $25 million for the last weeks of the fiscal year, but the CAQ government did not follow up on the urgent request.

The association that represents these establishments had suggested that 1200 of the 7600 beds could be closed due to lack of adequate funding.

In addition, the association wishes to submit its requests in view of the tabling of Minister Eric Girard’s budget in the coming weeks, but Lavoie fears that all the decisions have already been made without its members having been able to make themselves heard.  

“I imagine that the government has room to manoeuvre, it’s not over until it’s over,” said Lavoie. “We have to sit down with the government so that we review the funding rules,” she demanded, because currently, “the entire model (of private CHSLDs under agreement) is in danger, the institutions are in danger.”

This is because the agreement with the government, renewed year after year, does not cover the high annual inflation that has persisted since the pandemic.

The gap that has widened between expenditure and the envelopes allocated by Quebec to accomplish the mission is estimated at 12 per cent by the ECHA, which is calling for indexation aligned with the Consumer Price Index.

The association is calling for the return of longer-term funding agreements, over five or six years, as was the case before 2015, for more predictability.

“We wouldn’t have to cry out for help every year because we will have perpetuated an efficient model,” said Lavoie.

This is the third time in three years that the ECHA has asked for additional aid at the very end of the year, a sign that the issue is recurrent. The organization had obtained $15 million in previous years.

According to data provided by the Ministry of Health and Social Services, Quebec will provide a total net funding of $1.063 billion in 2024-2025 to the 71 private CHSLDs under agreement, including institutions that have recently been approved and are not part of the association.

The current agreement has three components: a clinical component, a real estate component and another for operating expenses.

The government is paying $378.4 million for the latter component, but it is in a large deficit, according to the AEPC.

It covers administrative staff, maintenance staff, operating expenses, food, heating, etc.

The real estate component is also insufficient, according to the AEPC. It amounts to $41.7 million, and some homeowners are struggling to even pay their municipal taxes.

The AEPC brings together 29 owner-managers who represent 65 establishments and facilities, including two rehabilitation hospitals.

Private CHSLDs under contract are private companies that provide a public service, according to parameters defined by the Ministry of Health and Social Services.

The monthly rates paid by residents are the same in private CHSLDs under contract.

–This report by La Presse Canadienne was translated by CityNews