The B.C. government says its review of provincial health authorities has led to more than $60 million in annual savings that can be put toward front-line care going forward.
The savings come from 1,100 positions that have been “eliminated, closed or left vacant” since the review began in March, according to a statement issued by the Ministry of Health on Wednesday.
While the ministry did not provide a breakdown of the specific jobs that have been axed, its statement strongly suggested that they were redundant administrative positions unconnected to the direct provision of health care.
The stated purpose of the review — which began by looking just at the Provincial Health Services Authority and was subsequently expanded to include the five regional health authorities — is “minimizing unnecessary administrative spending and ensuring resources support front-line patient care,” according to previous statements from the ministry.
“People in every corner of B.C. deserve a health-care system that keeps pace with their growing and complex needs,” said Health Minister Josie Osborne, in Wednesday’s statement.
“That’s why we’ve launched this review last March, to hear directly from the people doing the work and to identify how we can make our system more efficient. While that review is being completed, we’re already taking steps to reduce administrative duplication in health authorities so they can focus on what matters most: delivering high-quality care for patients across the province.”
Roughly 20,000 health-care workers attended town halls during the review’s “engagement period.” More than 15,000 workers completed surveys.
The review is ongoing, with its findings and recommendations to be published when it’s completed in “early 2026,” according to the ministry.
“While the review continues, the province is acting on its early findings by bringing together administrative and corporate services across regional health authorities and the Provincial Health Services Authority (PHSA), including legal, supply chain, finance and human resources,” the statement reads.
“The functions will be delivered through a new, standalone shared services organization that supports all health authorities, allowing them to focus more on delivering better care for patients.”
The ministry said this new organization will be established “by spring 2026,” with services transitioning to it “gradually” over time.
“The changes will remove bottlenecks, reduce redundancies, improve supports and create more consistency and co-ordination throughout the system at a lower cost,” the ministry said. “It will also encourage innovation and the sharing of ideas that strengthen B.C.’s health system.”
Key to the transition will be a repurposing of the PHSA to focus on “specialized, provincewide services,” such as cancer care, ambulance services and pediatric care, according to the ministry.
While the review is focused on cutting administrative costs, the ministry said B.C.’s health-care system already has “among the lowest levels of administrative spending in Canada,” according to the Canadian Institute for Health Information.
B.C.’s “corporate services expense ratio” is roughly 3.5 per cent, which is the second lowest in the country and below the national average of 4.4 per cent, the ministry said, before adding that it aims to further decrease that ratio.
A 0.1 per cent decrease in costs equates to roughly $35 million in additional funding available for patient care, the ministry said.
