July 3, 1998

 To:Community and Neighbourhood Services Committee

 From:Commissioner, Community and Neighbourhood Services

 Subject:Future Direction of Riverdale Hospital

  Purpose:

 The purpose of this report is to clarify the status of Riverdale Hospital, its relationship to the Canadian Union of Public Employees Local 79 and the City of Toronto, and provide details regarding the plans of the Board of Directors of the hospital with respect to future directions.

 Funding Sources, Financial Implications and Impact Statement:

 There are no financial implications arising from this report.

 Recommendation:

 It is recommended that the City of Toronto take no action with respect to the future direction of Riverdale Hospital, except if requested to do so by the Board of Directors of the hospital.

 Background:

 At its meeting on June 18, 1998, the Community and Neighbourhood Services Committee had a report before it from the Commissioner of Community and Neighbourhood Services providing an overview of the announcement of the Ministry of Health with respect to long-term care re-investment and the implications for the City of Toronto. The Committee also had before it a communication from Mr. Dennis Casey, Acting President, Canadian Union of Public Employees, Local 79, requesting that the City of Toronto respond to the Ministry of Health's Request for Proposal process to renovate the Riverdale Hospital for use as a long-term care facility.

 The Committee referred the communication from Mr. Dennis Casey to the Commissioner of Community and Neighbourhood Services for a report responding to the viability of the CUPE Local 79 request.

 Further to the correspondence submitted to the City of Toronto, CUPE Local 79 also wrote to Ms. Marilyn Churley, MPP (June 26, 1998) detailing their desire to have the hospital kept in public hands, explaining their proposal for the hospital to become part of the City of Toronto's Homes for the Aged Division, and indicating their interest in having the City apply to the Ministry of Health's RFP process to establish a long-term care facility on the site.

 Although CUPE Local 79 is the bargaining agent for both the City of Toronto and the Riverdale Hospital, each employer organization has a separate collective agreement and engages in separate bargaining processes.

 The Riverdale Hospital was built by the former City of Toronto in 1893. The City directly operated the hospital until the creation of the Municipality of Metropolitan Toronto in 1953. In 1963, Metro Toronto Council established the Riverdale Hospital as a separate legal entity, and provided the hospital with a one hundred (100) year lease for use of its current buildings and lands.

 The Health Services Restructuring Commission (HSRC) directed the Riverdale Hospital to cease its operation as a public hospital by March 31, 2000, and advised the hospital to consider conversion to a long-term care facility. The hospital is intending to pursue that direction, and have communicated same in writing to the City of Toronto (May 19, 1998).

 Comments:

 The City of Toronto Homes for the Aged Division currently owns and operates ten (10) Homes for the Aged, and has been engaged in a successful multi-year plan to improve the efficiency and effectiveness of the Homes' operation based on the revised funding formula implemented by the Ministry of Health. The Ministry of Health's recent announcement with respect to re-investment in long-term care improves the Division's financial position in terms of the operating budget. However, there is an initial indication that one or more of the City's Homes may require significant capital improvements within the next five to ten years. As more details become available, staff will be reporting back to Committee with respect to the implications of these suggested upgrades. Improvement of the Homes for the Aged currently owned and operated by the City of Toronto is viewed by staff as the highest priority for the Division, rather than the acquisition of an additional long-term care facility.

 Staff of the Homes for the Aged Division and Riverdale Hospital informally liaise, from time-to-time, on professional issues related to long-term care, and there is a historic collaborative working relationship between the two organizations. This collaboration has been successful because both organizations respect the governance structure and role of their individual entities, and respect each other's right to develop strategic directions independent of one another.

 The Board of Directors of the Riverdale Hospital approved a motion at its May 26, 1998 meeting directing its staff to respond to the current Ministry of Health Request for Proposals process for long-term care beds. Deadline for submissions to the Ministry of Health is July 31, 1998, and the Riverdale Hospital intends to meet this target date. Staff of the Riverdale Hospital are currently working on preparing their submission.

 Although CUPE Local 79 indicates an interest in having the City of Toronto take a lead role in responding to the RFP process on behalf of the Riverdale Hospital, such an undertaking is not recommended at this time. First, any action in this direction would appear to be contrary to the advice given to the Riverdale Hospital by the Health Services Restructuring Commission. Second, this direction would not be congruent with the strategic priorities and directions of either the Homes for the Aged Division and the Riverdale Hospital itself. Last, this direction would not respect the long-standing relationship between the municipality and the Riverdale Hospital as evidenced through the one hundred (100) year lease.

 It is expected that staff of the two organizations will continue to work co-operatively as professional colleagues during a time of transition and change for the Riverdale Hospital. In that spirit, staff of the Homes for the Aged Division are willing and able to respond to assistance requested by the Riverdale Hospital, if and when such a direction is approved by their Board of Directors.

 Contact Name:

 Sandra Pitters, General Manager, Homes for the Aged Division

Tel: 392-8907; Fax: 392-4180; E-mail: sandra_pitters@metrodesk.metrotor.on.ca

Commissioner, Community and Neighbourhood Services