

Campbellford Memorial Hospital is developing a three-year plan to erase its operating deficit and get back to financial health by being more efficient, not reducing services, says CEO Jeff Hohenkerk.
As I reported last week, the hospital had a deficit of $3.4 million for the fiscal year ended March 31, 2025, more than double the $1.6 million loss the previous year. It has reported deficits in each of the past four years. Technically, Ontario hospitals are supposed to balance their budgets but provincial funding has been chronically short and most small hospitals have been running in the red.
“Last year’s increase in CMH’s deficit was the result of several key factors,” Hohenkerk says. “We saw higher patient volumes, faced significant staffing challenges that required one-time investments to maintain safe care levels, and made targeted improvements to enhance the quality and timeliness of care. These were difficult but necessary decisions to meet the needs of our growing and aging community.
“Importantly, these efforts are paying off,” he adds. “CMH now ranks above provincial averages in many quality indicators for small hospitals. We’re proud that our community is seeing the benefits through better, faster access to care, even as we continue to work closely with government and health system partners on long-term financial sustainability.”
Hohenkerk said the hospital is working closely with the health ministry, the Ontario Hospital association and peer hospitals to develop a phased deficit-recovery plan.
“At this stage, the focus is on identifying operational efficiencies and managing cost pressures, not on reducing services. Our priority remains delivering safe, high-quality care to the community, and any steps taken will be guided by that commitment. We’re confident that, through collaboration and careful planning, we can strengthen the hospital’s financial sustainability without compromising the care our patients rely on.”
In my earlier story I noted a line item for contracted services that had increased 64 per cent to $2.9 million. I wondered if it was due to the use of expensive agency nurses who fill staffing gaps.
Hohenkerk says that’s not the case.
“This increase does not include agency nursing costs. CMH has made significant progress in reducing its reliance on agency staff and is on track to be agency-free by this fall, an important milestone in supporting both financial sustainability and consistent, high-quality care for our patients.”
The reason that category jumped “was largely due to a reclassification of certain expenses to better align with provincial reporting standards,” he says. “Costs previously categorized under “Supplies” have now been appropriately reported as Contracted Services.”
A major increase was in the cost of transporting patients to Peterborough Regional Health Centre due to an increase in very sick patients and the rising cost of the service, he says.
One challenge that continues this year as the hospital works on its plan for a new facility is that strategic planning and project management are not funded by the province, Hohenkerk says. Those expenses cannot be paid by the $2.5 million planning grant the government recently announced.
The CEO says the hospital is looking at sharing more services with other facilities and is exploring other efficiencies.
“We’re grateful for the support we’ve received from Ontario Health, which has recognized the financial pressures facing hospitals like ours and provided in-year funding to help us manage through this period. This summer, we’re developing a three-year plan to help bring our budget back into balance.”
The hospital is not being distracted by the financial challenges, Hohenkerk says.
“As a community hospital, our focus remains on what matters most to our patients and families: improving access to primary care, home and community care, reducing wait times in the emergency department, and making it easier to access health information digitally.” system that supports the health of our community now and into the future.”
Hohenkerk says, “MPP David Piccini is aware and understands the financial challenges CMH and the broader health system are facing, and he continues to advocate strongly on our behalf.”
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