Amid drastic funding cutbacks, Interior Health and the hospital district have managed to agree to fund six capital projects this year.

Todd Mastel, who is the Director, Business Support - Acute/Medicine for the Interior Health Authority (IHA), appeared before the board of directors for the Kootenay East Regional Hospital District on Friday, February 3.

He explained to the board that this year, because of funding changes, the Ministry of Health is not giving IHA money for any capital projects that cost more than $100,000.

"This year is a very challenging year for the health authority in terms of funding that has come to us. Definitely we are not receiving any funds in that over $2 million price range. And we are actually not receiving any funds provincially at this point in that $100,000-$2 million price range either," said Mastel.

He explained that IHA has managed to come up with a $37 million capital budget for the 2012/2013 fiscal year out of its equity and surpluses. It's not nearly sufficient, Mastel went on.

"If we go on the assumption that equipment has a lifespan on average of 10 years, and buildings an average lifespan of 35 years, our annual capital budget would mean investing about $100 million, Health Authority-wide."

IHA asked the hospital district to fund 40 percent of two construction projects costing more than $100,000: an upgrade to the heliport at Cranbrook's hospital, and a new fire alarm system at Swan Valley Lodge in Creston.

The board chose not to provide funding for those projects, but it agreed to budget $428,800 for 40 percent funding of six projects within the hospitals' walls.

Those projects are: a renovation of the obstetrics room at Fernie's hospital; replacing the Air Handling Unit at Golden Hospital; expanding the clinical area at Cranbrook Wellness Centre; a covered walkway at Cranbrook's hospital; a new automated medication cabinet at Cranbrook's hospital; and a cardiac ultrasound at Cranbrook's hospital.

John Kettle, chair of the hospital district board, explained that the district doesn't provide funding for heliports or residential care facilities.

"This board has chosen to do the bricks and mortars. We have not chosen to expand out into areas that we don't have any business in," he said.

"It's a funny yin and yang thing we go through every year. They have an ask and we have a give. Ours has been consistently brick and mortar and that's where we're going to stay."

Interior Health hasn't given up on the two major capital projects the hospital district is not funding. The heliport at Cranbrook's hospital needs to be upgraded to accommodate the new, larger helicopters STARS is phasing in; and Swan Valley Lodge in Creston needs a new fire alarm system to replace one that's not up to code.

"Without the funding from the Regional Hospital District, we are going to have to look internally for other funding sources. Because they are priorities, we will have to be creative with the exploration of those funding sources. Capital dollars are very scarce, so we will have to look in every corner for those dollars," said Jason Giesbrecht, Acute Area Director for the East Kootenay.

The hospital district board adopted its 2012 Budget Friday, and it included a 22 per cent reduction in taxation.

"Historically, we have taken the attitude that when we need the money for a project that we can describe, then we'll tax for the money," said chair John Kettle. "When we don't need the money, then the taxpayer gets their money back. To me, that's about as fair a deal as you're going to make for the taxpayer.

"It is pay as we go, and tax when we need it, and when we don't need it, don't take it."