2020-21
Budget Plan

and

2020-21 and 2021-22

Capital Expenditure
Plans

May 29, 2020

 

2020-21 Budget Plan
and Capital

Expenditure Plans

Saskatchewan
Health Authority

 

2020‐21 Budget Plan
The Saskatchewan Health Authority budget plan is 
prepared on a consolidated basis and consists of:
• SHA operating budget
• SHA capital budget
• 3sHealth operating and capital budgets
Notes:
• The 2020‐21 Budget Plan does not include financial impacts that may be incurred 
from the COVID‐19 pandemic due to their uncertainty 
• Also not built into the 2020‐21 Budget Plan at this time is recently announced 
government economic stimulus funding and planned expenditures. A notional plan is 
being presented for approval by the Board, pending government budget 
appropriation and approval of planned expenditures

 New Initiatives
2020‐21

•New government investments 
announced and built into the 
Operating Budget are:
• $20M – Surgical 
• $15M – Administrative systems 
replacement
• $12M – Mental Health & Addictions
• $8M – Other various initiatives

 Total Budgeted Operating Revenue

Total Revenue  $4,082,803,845
Increase of $130,884,064 (3.3%) from 19‐20

 Total Budgeted Operating Expenditures 
(After Balancing Strategies)

Total Expenditures $4,082,803,845
Increase of $115,496,772 (2.9%) from 19‐20

 Capital Budget 
Capital Overview
Buildings:  
• 270+ health care facilities
• Facilities replacement value estimated at $7.3 billion
• Provincial average age of buildings is 41 years
Equipment:
• Original cost ‐ $1.02 billion with only 16.7% 
remaining value after depreciation
Information Technology Equipment:
• Major investments required
• Co‐ordination with eHealth

 Capital Plan Objectives
• To address:
• Infrastructure and equipment failure risk
• Asset value (performance)
• Priorities for sustainment of critical 
operations
• Effective deployment of investments
• Patient and staff safety

 2020‐21 Capital Expenditure Plan
SASKATCHEWAN HEALTH AUTHORITY
CAPITAL EXPENDITURE PLAN
FOR THE YEAR ENDING MARCH 31, 2020
Ministry - Life Safety/Emergency & Infrastructure (Block)
Ministry - Capital Equipment
Ministry - Major Projects
Foundation & Donation Commitments
Total 2020-21 Funding Sources

54,260,000
23,109,000
44,600,000
10,015,532
131,984,532

Infrastructure
Capital Equipment
Major Projects

54,260,000
33,124,532
44,600,000
131,984,532

Total Planned Expenditures

 2020‐21 Capital Infrastructure Budget
• Life Safety/Emergency & Infrastructure ‐ $54.26M
• Approx. $2 million available for contingency
2020‐21 FUNDING ALLOCATION
Ministry Directed 
Projects
19%

Contingency
1%

2018‐19 & 2019‐20 
Carryover Projects
80%

 2020‐21 Capital Equipment 
Expenditure Plan
• Equipment funding from Ministry/Foundations/Other 
Donations ‐ $33.1M

 2020‐21 Major Capital Projects 
Expenditure Plan
• Major Projects – $44.6M
• Meadow Lake Long‐Term Care 
$  15.7M
• Provincial Hospital Electrical Renewal  $  13.9M
• Victoria Hospital
$  15.0M
• Based on recent government announcement, there is 
anticipation of additional funding to support Major 
Projects.

 2020‐21 Budget Plan Summary
SHA Budget
Budgeted Operating Revenue
Budgeted Operating Expenses
Operating Budget Surplus

$         4,082,803,845
$         4,082,803,845
$0

3sHealth Budget
Budgeted Operating Revenue
Budgeted Operating Expenses
Operating Budget Deficit

$               65,714,000
$               67,114,000
$                (1,400,000)

Adjusted Operating Budget (Deficit) including 3sHealth

$               (1,400,000)

 2020‐21 Budget Plan Summary
(continued)
Budgeted Capital Revenue
Budgeted Capital Expenses
          Capital Budget Surplus

$              131,984,532
$              123,240,699
$                   8,743,833

Adjusted Consolidated Surplus (Deficit)
            Adjusted Operating Deficit (including 3sHealth) $                 (1,400,000)
$                   8,743,833
            Capital Surplus
$                   7,343,833
            Total Adjusted Surplus

Note – The budgeted capital expenses of $123,240,699 differs from the capital expenditure plans 
total of $131,984,532.  The planned expenditures represents the actual projects or equipment 
purchases that funding will be spent on.  For budgeting purposes the capital expenses is the amounts 
that will be expensed for accounting purposes and represents amortization of all owned capital 
assets and interest charges on long‐term debt for the year.

 Recommendations:

• That the Board approve the Saskatchewan Health 
Authority 2020‐21 Budget Plan
• That the Board approve the 2020‐21 Capital 
Expenditure Plan

 2020‐21 Government Economic 
Stimulus
• An economic stimulus package through SaskBuilds was recently 
announced by provincial government for infrastructure renewal 
projects across the public sector, including healthcare
• Health sector funding identified includes $25 million in 2020‐21 and $75 million 
in 2021‐22
• Due to the timing of when this was announced and because funding has not 
been formally approved and planned projects have not been approved through 
process with SaskBuilds, the 2020‐21 anticipated amounts have not been 
included in the SHA Budget Plan as just presented
• However, identification of proposed or notional projects for this funding, using 
a similar prioritization process utilized by SHA Infrastructure Management, has 
been completed and submitted to the Ministry of Health 
• 2020‐21 projects are ready to initiate & execute, pending government budget 
appropriation and approval of planned expenditures

 2020‐21 Government Economic 
Stimulus Capital Expenditure Plan
• $25M SaskBuilds economic stimulus 
2020‐21 FUNDING ALLOCATION
Affiliates
12%

Exteriors
2%
Roofing
20%

Other Infrastructure
5%
Nurse Call
4%

Medical Gas / Vac
2%
Elevators
6%

Interior / Functional
18%

Plumbing
4%

Grounds
2%
Fire Safety
1%

Electrical
11%

Hvac and Controls
13%

 Recommendation:

• That the Board approve the notional 2020‐21 
Economic Stimulus Capital Expenditure Plan, pending 
government budget appropriation and approval of 
planned expenditures

 2021-22 Capital Expenditure
Plan

Saskatchewan
Health Authority

 

2021‐22 Capital Expenditure Plan
• Multi‐year planning and budgeting creates opportunities for 
2021‐22 projects and equipment acquisition by initiating 
planning in current fiscal year to enable efficiencies in delivery 
next fiscal
• This is a notional plan requiring Board approval, and pending certain approvals by 
government
• Plan assumes similar Ministry of Health funding for infrastructure projects as received in 
2020‐21 ($55 million)
• Plan assumes similar Ministry of Health funding for equipment as received in 2020‐21 
($23.1 million) and nominal amounts from Foundations
• Plan assumes government economic stimulus funding as recently announced for $75 
million
• Infrastructure planning includes initiation through to design and possibly procurement
• Funding/cash flow will be required to support planning efforts in 2020‐21 for 
2021‐22 projects
• Given some 2018‐19 and 2019‐20 current projects are on hold due to COVID‐19 
constraints, consideration will be given on reallocation of those projects funds for 
planning efforts

 2021‐22 Capital Expenditure Plan

Ministry - Life Safety/Emergency & Infrastructure (Block)
Ministry - Capital Equipment
Foundation & Donation Commitments
Government Economic Stimulus Funding
Total 2021-22 Funding Sources
Infrastructure
Capital Equipment

$

$
$

Total Planned Expenditures

$

55,004,000
23,109,000
524,000
75,000,000
153,637,000
130,004,000
23,633,000
153,637,000

 2021‐22 Capital Infrastructure 
Expenditure Plan
• Life Safety/Emergency & Infrastructure ‐ $55M
2021‐22 FUNDING ALLOCATION
Contingency
7%

FCI Renewal
5%

Exteriors
3%

Roofing
3%

Elevators
3%
Plumbing
6%

Affiliates
11%
Hvac and Controls
15%
Other Infrastructure
7%

Electrical
3%

Nurse Call
6%

Fire Safety
8%

Medical Gas / Vac
2%
Interior / Functional
14%

Grounds
7%

 2021‐22 Capital Equipment 
Expenditure Plan
• Equipment funding from Ministry/Foundations/Other 
Donations ‐ $23.6M
E ‐ Other
15%

E ‐ Operating Room
15%

E ‐ Medical Monitoring
3%

E ‐ Patient Beds & Stretchers
9%

E ‐ Laboratory
3%
E ‐ Food Services
1%
E ‐ Environmental Services
1%

E ‐ Patient Care
6%

E‐ Emergency Medical 
Services
4%

E ‐ Patient Lifts
5%
E ‐ Pharmacy
3%
E ‐ Tubs
7%

E ‐ Digital Health
17%
E ‐ Diagnostic Imaging
11%

E ‐ Defibrillators
0%

 2021‐22 Government Economic 
Stimulus Capital Expenditure Plan
• $75M SaskBuilds economic stimulus 
2021‐22 FUNDING ALLOCATION
Affiliates
12%

Exteriors
6%

Roofing
6%
Elevators
2%
Plumbing
3%
Hvac and Controls
11%

Electrical
2%
Fire Safety
0%
Grounds
2%
Interior / Functional
3%
Other Infrastructure
53%

 Recommendation:

• That the Board approve the notional 2021‐22 Capital 
Expenditure Plan, pending government budget 
appropriation and approval of planned expenditures

 Questions?

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