The organization that runs Markham Stouffville Hospital has eliminated about 18 positions as it tries to bring its budget back into balance, with most of the cuts falling on managers and other non-clinical staff.

Oak Valley Health, which operates the Markham hospital and Uxbridge Hospital, told staff at both sites in a memo on Jan. 20 that it faces significant financial and operational pressures, citing population growth among other factors.

Earlier today, a small number of colleagues were informed that their roles are being eliminated or changed as part of a targeted restructuring to address budget challenges.

— Oak Valley Health senior leadership team, memo to staff

The memo said the decisions were informed by Ministry of Health guidance, comparisons with peer hospitals and discussion across the organization, and that changes were made at every level, including leadership.

Patient care not cut, hospital says

In a statement reported by yorkregion.com on Jan. 22, Oak Valley Health said the vast majority of roles were not affected. About 18 management and non-union employees were told their jobs had been eliminated.

The majority of role eliminations were within management and nonclinical areas.

— Oak Valley Health statement

The hospital network also said no bedside nursing or direct patient care services were cut.

From surplus to deficit

The restructuring follows a sharp turn in the hospital's finances. Oak Valley Health finished the 2024-25 fiscal year with an operating deficit of $9.3 million, according to its audited financial statements, after posting a surplus of more than $7 million the year before. Spending on salaries, benefits, drugs and supplies grew faster than revenue.

Under the Ministry of Health's sector stabilization plan, hospitals running deficits have been asked to draw up three-year plans to balance their books.

What it means for Markham patients

Markham Stouffville Hospital is the main acute-care hospital for much of Markham, and demand on it has grown with the city. Oak Valley Health has not named the departments that lost positions, beyond saying most were in management and non-clinical areas.