# Ontario hospital budget deficit and staffing cuts

> Live situation record from CLSTR: https://clstr.news/situations/ontario-hospital-budget-deficit-and-staffing-cuts
> Updated: 2026-10-16T20:30:46.000Z. Sources: 6. Developments: 2.

Ontario hospitals are implementing staff reductions to address significant budget deficits following provincial mandates. These mandates require hospitals operating in the red to develop three-year plans to balance their budgets.

In late September, Hamilton Health Sciences announced plans to eliminate more than 400 union and non-union positions, including approximately 143 nursing and 84 healthcare aide roles, to address a projected $150 million deficit for the 2026-27 fiscal year. The network noted that roughly one-third of these roles are currently vacant.

By mid-October, St. Joseph’s Health Care London reported it would cut over 100 registered nurse positions within its mental health programs at the Parkwood Institute to manage a $4.7 million deficit from the previous year and a projected deficit for the current year. This restructuring involves replacing some registered nurse roles with positions for registered practical nurses, personal support workers, and occupational therapists.

## Claims

- St. Joseph’s Health Care London is cutting 83 full-time and 31 part-time registered nurse positions. (corroborated by 3 sources)
- The hospital is adding roles for registered practical nurses, personal support workers, occupational therapists, physiotherapy assistants, social workers, and therapeutic recreation assistants. (corroborated by 3 sources)
- St. Joseph’s Health Care London recorded its first-ever deficit of $4.7 million last year. (corroborated by 3 sources)
- The hospital aims to reach a balanced budget within three years. (corroborated by 3 sources)
- Ontario Health Minister Sylvia Jones has instructed all hospitals in deficit to eliminate them within a three-year timeframe. (corroborated by 3 sources)
- The province has increased hospital funding by 4% this year, marking the fourth consecutive year of increases. (corroborated by 2 sources)

## Timeline

### 2026-10-16: St. Joseph’s Health Care London cuts nursing roles amid deficit

St. Joseph’s Health Care London is cutting over 100 registered nurse roles in its mental health programs to combat deficits, aiming for a balanced budget within three years.

4 sources. https://clstr.news/cluster/st-josephs-health-care-london-cuts-nursing-roles-amid-deficit

### 2026-09-24: Hamilton Health Sciences to cut 400 jobs amid Ontario budget mandates

Hamilton Health Sciences plans to cut over 400 jobs, including nursing roles, to address a $150 million deficit following provincial budget-balancing mandates in Ontario.

3 sources. https://clstr.news/cluster/hamilton-health-sciences-to-cut-400-jobs-amid-ontario-budget-mandates

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Cite as: Ontario hospital budget deficit and staffing cuts. CLSTR, https://clstr.news/situations/ontario-hospital-budget-deficit-and-staffing-cuts