The government’s decision to reduce the reimbursement homes receive impacts OMNI to the tune of $1.2 million. Fraser Wilson, OMNI CEO, earlier told the OMNIway the loss of revenue would put a standstill on scheduled renovations at three OMNI homes, as well as all non-essential improvements in the other homes. Fraser has since learned as a result of Thursday's talks between the OLTCA and Ministry, the government has agreed to work with the OLTCA towards a resolve.

Fraser says one of the first actions of the new government was to essentially decrease the reimbursement homes receive for property taxes. Meaning, while the property taxes have increased with the addition of 20,000 new beds, the pool of funding isn’t being increased, decreasing the 90 per cent reimbursement homes have received since 1993, Fraser says. For OMNI, that means a loss of revenue of $333,000 in 2003 and $838,000 in 2004.

Fraser says the government made a commitment to work with the OLTCA towards resolve on the property tax issue. "Essentially there’s two options – provide additional funding to maintain the 90 per cent as new beds come on stream or exempt all long-term care homes from paying property taxes,” he says.

Private homes and some charitable facilities pay property taxes, while publicly-operated homes do not. When the NDP government was in power, it introduced the reimbursement for private homes as a means to ensure service delivery was consistent in all types of homes, says Fraser.

In reaction to yesterday's meeting, Fraser says, “Although the indication seems to be supportive, the proof will be in the pudding.”