For almost a year, negotiations have been ongoing between the Town of
Saugeen Shores and the physicians using the Saugeen Shores Medical
Building in Southampton.
The Service Contract Agreement expired December 31st, 2007 but monthly
charges continued throughout 2008 based on the previous contract. The
municipality wanted to implement an agreement that would reduce the
operating deficit and provide stability for the future while also being
acceptable to the physicians using the facility.
13/01/2009 04:18 PM
The new five-year agreement, passed by Council, will
continue to December 31st, 2012 and will be based on 25% of all OHIP
billing done through the clinic to a cap of $3,750 per month. A cost of
living adjustment will be applied to the maximum cap beginning January,
2009 and for each subsequent year of the agreement.
One of the physicians has recently relocated his practice but it is
expected that operating costs will be further reduced with staff cuts,
the addition of another physician and considering alternative
opportunities to generate revenue within the building. The operating
deficit for 2008 is $47,300 and is expected to be $60,900 if occupancy
remains constant. If it is increased to capacity in 2009, it is
anticipated the deficit could go as low as $16,900.