VARIANCE DESCRIPTION
The total departmental year-end variance is projected to be approximately: $53,000 Surplus
Ministry of Long-Term Care Funding: $1,074,000
The surplus is attributed to Huron Lodge’s substantial Case Mix Index (CMI) increase which adjusts the Nursing and Personal Care Per Diem for the home’s resident acuity commencing August 1, 2020. The Case Mix Index is calculated from resident health assessments submitted to the Ministry. In addition to Huron Lodge’s CMI adjustment, there was a per diem increase. Taking into consideration the formula for calculating the CMI, Basic Accommodation Revenue Deduction from the funding, and the Per Diem increase, it is estimated that Huron Lodge will receive approximately $545,000 in additional Ministry of Long-Term Care funding. In addition, COVID-19 funding in the amount of $529,000 is expected and to be used for the prevention and containment activities directly related to COVID-19. It is unknown at this time if additional COVID-19 funding will be provided for these incremental expenses. Note, COVID-19 Pandemic Pay Funding is directly offset with the actual pandemic pay paid and is not part of this variance report.
Accommodation Revenue: ($60,000)
The Ministry of Long-Term Care has deferred Long-Term Care (LTC) Home accommodation rate changes for a period of six months. The new rates that were scheduled to be applied on July 1, 2020 have now been deferred to January 1, 2021 to provide relief to residents and families that may be experiencing financial challenges due to COVID-19. The Ministry will be providing the Long-Term Care Homes funding to cover the portion of increases and forms part of the surplus in the Ministry of Long-Term Care Funding account described above.
Equipment: ($75,000)
To operate under COVID-19 legislation, the department has purchased various types of equipment. Technology equipment to support virtual family visits as it is mandated to provide this to the residents. Medical equipment was purchased in order to comply with the active screening of all staff, visitors and residents. In order to meet the protocols for infection control, carts and sanitizing stations were also purchased. Larger tables were purchased to facilitate the prescribed 2 metre distance during meal times. Other equipment such has in-room dining trays were also purchased as newly admitted residents complete their 14 day self-isolation in their own room.
Purchased Services: ($115,000)
Additional costs for security and caretaking purchased services are expecting to see a deficit of approximately ($115,000) at December 31, 2020. Security services protects the entrance and exit points of the building. Due to the pandemic environment and the new visitor policy in place, additional security hours are required in order to have a post at the visitor entrance as well as the main entrance. Furthermore, the security personnel aid in the sanitizing of all items entering the facility as well as support the screener functions. The Security personnel oversee all products and people who enter and leave the building and it is expected that the additional costs will continue to the end the year with an unfavourable variance of ($30,000).
The caretaking services at Huron Lodge are a purchased service. In order to meet the increased legislative requirements for enhanced cleaning protocols, the hours in which the caretaking service provider have increased. It is estimated that those increased hours will continue contributing ($85,000) to the deficit.