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  • Released November 27, 2013

    Rouge Valley Health System and The Scarborough Hospital thank the Central East Local Health Integration Network (Central East LHIN) for allocating $3.8 million in funding for the ongoing merger exploration process.

    Today, the Central East LHIN Board of Directors approved $1.3 million to reimburse the hospitals for their initial integration planning costs, and up to $2.5 million to fund the costs for the next phase, which includes due diligence, integration planning activities and stakeholder engagement.

    “The Central East LHIN’s support is good news for our communities and for our two hospital corporations,” said Joan Wideman, Board Chair, Rouge Valley Health System. “This provides us with the opportunity to move to the due diligence phase of this process. We will continue to inform and engage our communities throughout the process.”

    “We are pleased with the participation of our staff, physicians, and our communities,” commented Stephen Smith, Board Chair, The Scarborough Hospital, “and we extend our appreciation to the Central East LHIN for their support in the process and for providing us the means to forge ahead with next steps.”

    Process

    Earlier this month, the Boards of Directors of the two hospital corporations approved, in principle, proceeding to the next steps toward a merger. That was followed on Monday by a public endorsement of a merger by physician leaders and associations practicing at the two hospital corporations.

    With today’s decision by the Central East LHIN to provide one-time funding for the next phase of integration work, the next steps will involve financial and legal due diligence, governance planning activities, and ongoing stakeholder engagement.

    The next phase is expected to be completed over the next 60 to 90 days, at which time the two hospital Boards will reconvene to make a final decision as to whether or not to proceed with a merger. At that time, the Boards will consider the outcome of the due diligence, stakeholder input, level of financial support secured, and the status of the capital planning grants.

    Should the hospitals recommend proceeding with a merger at that time, then the matter would be subsequently considered by the Central East LHIN Board and the Minister of Health and Long-Term Care.

    Commitments

    The hospitals have jointly made the following commitments in this process:

    • All four hospital campuses will stay open;
    • All four of the emergency departments will stay open;
    • Patient care services currently provided at the Rouge Valley Ajax and Pickering campus will continue to be delivered there regardless of the outcome of the process; and
    • All four hospitals will continue to provide high-quality and safe care during any health care system transformation.

    To access the materials presented at today’s Central East LHIN Board meeting, click here.

    To view the Central East LHIN news release, click here.

    Information about this process can be found at the Leading for Patients website at www.leadingforpatients.ca.

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