Hamilton Health Sciences plans to eliminate more than 400 positions amid budget pressures

Hamilton Health Sciences (HHS) is planning to eliminate more than 400 positions as the hospital network works to address a projected $150-million deficit for the 2026–27 fiscal year.

The planned reduction involves approximately 413 union and non-union positions across the organization. About one-third of the affected positions are currently vacant, which is expected to reduce the number of employees who ultimately lose their jobs.

The reductions are expected to include approximately 143 nursing positions and 84 health-care aide positions. Because a significant number of positions in those areas are currently vacant, HHS has indicated that few, if any, employees in those categories are expected to lose their jobs.

The measures come as Ontario hospitals facing deficits have been directed by the province to develop multi-year plans to return to balanced budgets.

HHS achieved approximately $40 million in cost reductions last year but says additional measures are necessary as operating expenses continue to rise and demand for hospital care remains high.

For the current fiscal year, the organization has established savings targets of two per cent for clinical budgets and five per cent for administrative budgets.

HHS president and CEO Tracey MacArthur has said some staffing capacity added during and following the COVID-19 pandemic was created to address exceptional circumstances and is not supported by continuing funding. The organization now needs to adjust that capacity to a level it says can be sustained with available funding.

The Ontario government increased hospital funding by four per cent this year, representing approximately $1.1 billion in additional funding. However, the Ontario Hospital Association has previously indicated that hospitals require substantially more funding to address their financial pressures.

The province maintains that the changes at HHS will not affect patient services or access to care.

Hospital unions have expressed a different view.

CUPE Local 7800, which represents thousands of workers at HHS, has warned that reducing staffing will put additional pressure on employees and could affect patient care. The union has announced a campaign opposing the cuts.

The Ontario Nurses’ Association has also raised concerns about reductions to nursing positions and their potential effect on patient care.

Hamilton Health Sciences is not alone in facing difficult financial decisions. Other Ontario hospital organizations have announced workforce reductions or vacancy-management measures as they attempt to balance their budgets.

The Ottawa Hospital previously announced plans to reduce its workforce by approximately three per cent, while London Health Sciences Centre has pursued nursing reductions through attrition. Chatham-Kent Health Alliance has also announced plans to eliminate positions largely by leaving vacancies unfilled.

The developments highlight the growing financial challenge facing Ontario hospitals as health-care organizations attempt to reconcile rising operating costs and increasing demand for services with available provincial funding.

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