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Santé Québec is contemplating, as a last resort, “a selective reduction of services” to the population in a four-phase plan to slash $1.5 billion in spending within the province’s beleaguered health network, The Gazette can reveal. “They’re starting to talk about whether or not that’s somewhere where they need to go,” a high-ranking source said on Friday. “Nobody has decided that yet. They’ve got a four-phase plan for reducing spending. The fourth phase is a selective reduction of services. The other phases are mostly administrative, things like getting rid of unfilled positions, reducing your printing if you don’t need to print or getting rid of paper.” Asked what services might be cut, the source — who agreed to be interviewed on condition of anonymity because of the sensitivity of the issue — replied: “I haven’t heard any talk yet. We’re looking at it internally in our own organization and we’re scratching our heads.” However, the fact that Santé Québec is even mulling the possibility of cutting health services to the public underscores the gravity of the financial crisis. “Up until now, they were saying, ‘You can’t do anything to reduce service or access.’ But they’re now getting to the point where they’re actively considering what, if anything, that could be done to affect certain services. No decisions have been taken.” Officials at Santé Québec were not immediately available for comment. But in a statement posted to the Bluesky social media platform (and emailed to The Gazette on Friday afternoon), a spokesperson confirmed a report last week by the newspaper that Santé Québec has ordered hospitals and other facilities to chop nearly $1.5 billion from their budgets in the coming months — an amount that would be 50 per cent greater than previously known. “The accumulated deficit at mid-year (was) $1 billion,” Santé Québec noted in the statement. “Looking ahead to the end of the fiscal year in March 2025, the projected deficit could rise to as much as $1.5 billion if nothing is done. “There are three main reasons for the budget overrun,” the Crown corporation explained. “First, there has been an increase in demand for existing services, for example, mental health, home care and emergency room visits. Second, the development of new services to meet the needs of an aging population. Third, inflation, which was high at the beginning of the year.” Health Minister Christian Dubé created Santé Québec with a view to running the province’s $60-billion-a-year public health system more efficiently. “In anticipation of our taking office on Dec. 1, Santé Québec teams have been working with each of our facilities over the past few weeks to implement solutions, based on local realities, to generate greater efficiency and return to a balanced budget for the current year.” In its Bluesky post, Santé Québec emphasized the importance of “being transparent in communicating the state of finances in the health and social services network.” However, as soon as The Gazette published its story online last week citing the $1.5 billion figure, an official called a reporter to deny that sum. Santé Québec, headed by Geneviève Biron, had also considered the cost-cutting option of barring employees from holding down jobs at two hospitals. But after a public backlash, the organization announced it would give workers an extra year to adjust. Another austerity measure already in place is a hiring freeze on managers. The austerity measures are being driven by worries in the Legault government that U.S. bond-rating agencies might lower Quebec’s credit rating, which in turn could drive up the interest on debt payments by the provincial government. Quebec’s spending on health and social services has climbed to $60 billion in 2024-25 from about $35 billion six years ago, while the government has posted a record deficit of $11 billion this year. Even in the absence of direct cuts to services, health-care managers have expressed concern that any dramatic reduction in spending would inevitably result in problem with access, including longer wait times for surgery. “At some point there are going to be consequences. I mean, it’s not a matter necessarily of cutting service, but this could result in longer wait times,” a senior administrator had said in an interview. aderfel@postmedia.com x.com/aaron_derfel Related Analysis: Quebec keeps moving the goal posts on health care Updated: Quebec's wait for breast cancer surgery has never been this long

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