At the Chatham-Kent Health Alliance (CKHA), cash out continues to exceed cash in.
CKHA leadership anticipates that to change, but not until 2027-28.
In an online press conference to talk about the 2026 annual report, Adam Topp, president and CEO of CKHA, said the hospital continues to operate at a deficit, albeit a shrinking one.
“We think we’ve created some positive momentum by reducing the deficit by $7.5 million in a year, decreasing our debt levels,” he said.
The starting point was $13.5 million. Topp said CKHA administration has budgeted for a $4-million deficit for the 2026-27 fiscal year.
“We’re still obviously looking to improve that (deficit),” he said, adding the goal is to wipe out the deficit by the 2027-28 fiscal year.
Topp said eliminating the deficit will provide improved financial flexibility.
“Anytime you run a deficit, you’re just spending money you don’t already have,” he said. “You can run a deficit for a few years, but it’s not something you can sustain. We’re at the point we can’t sustain it. Next year we have to balance or we won’t be able to make any investments.”
A Friday announcement by the Ford government is sending additional funding to CKHA, but as of press time, it was not known how this would impact CKHA’s finances moving forward.
According to Aaron Ryan, vice-president of performance and the chief financial officer with CKHA, the hospital had $233.5 million in revenue over 2025-26, with $239.5 million in expenses.
The CKHA has $11.9 million in the bank, having increased the cash balance by $2.2 million, while reducing the long-term debt by nearly 10 per cent, down to $9.2 million.
Throughout the tough economic time at CKHA, Topp said hospital administration has been able to invest $9.7 million into infrastructure and equipment.
“We’re continuing to invest in patient care as we are going forward,” he said.
In regard to the money CKHA does have in the bank, Topp said it provides flexibility to make key investments for new X-ray machinery, and new boilers and chilling units are in the works for the Chatham site.
Topp said that money in the bank will “largely disappear this year, because of the investments we want to make.”
How did hospital officials transition from an annual deficit of $13.5 million to $6 million in one year? Topp said key elements include revenue growth by $8.4 million year over year while limiting expenses growing to about $900,000.
“From one year to the next, we have made some very meaningful improvements. The plan is to continue reducing the deficit next year,” he said. “As we reduce our deficit and as we balance the books, that means we do have more resources to invest and to continue to grow.”
One tough element is the elimination of positions at the hospital.
Announced in the spring, the CKHA is looking to cut 49 positions. Many of those are unoccupied at this time.
Justin Turkington, CKHA’s head of human resources, said the hospital is about halfway through the attrition and reassignment process. Sequential seniority is at play here, as the most senior personnel are approached first, and so on.
“We do still anticipate not having anyone exiting the organization who does not choose to do so,” he said.
Topp said the plan is to not simply slash and burn, but rather be aligned for the future.
“Our goal is to make sure we have the resources to be sustainable and we’re not wiping out whatever cash reserves we might have. We want to invest those cash reserves into the organization,” he said.
