"No," the QHC president said firmly Monday when asked if cuts would have to be made if money was not forthcoming from the province to erase its red ink.

He said measures are under consideration that could bring that deficit down and those steps will be discussed at QHC's board meeting March 26.

"I think that we are very optimistic," Laughton said.

An Ontario Hospital Association survey, conducted March 5, found that 75 of the province's 154 public hospitals reported they are facing a deficit for the fiscal year starting April 1.

"We are in that group," Laughton said.

The projected QHC deficit for 2008-09 now stands at $3.6 million.

Service cuts are reportedly being considered at some hospitals because provincial law prohibits them from running deficits.

But Laughton said QHC is not contemplating service cuts at any of its four hospitals.

But the corporation will be requesting an extension from the province for more time to pare down the projected deficit.

The original deadline was March 31.

Laughton said the hospital is also reluctant to sign its accountability agreement by month's end. The agreement guarantees QHC meet certain performance levels.

"I don't envision we are going to meet that deadline."

He said QHC is working in a "collaborative" fashion with the regional body that controls health-care spending - the South East Local Health Integration Network - to eliminate the deficit.

"Our LHIN is being reasonable and flexible with us," Laughton said. The province also hands out additional funding to hospitals each year, with 2.4 per cent slated for 2008-09.

However, Laughton called the increase "challenging" to cover the deficit because of wage increases and other factors.

"Most hospitals in the province are facing two main issues," he said - overcrowding, due in large part to elderly patients remaining in hospital because of the lack of nursing home beds, and significant payments to affiliated physicians to cover on-call and other hospital duties because of a doctor shortage.

QHC spokeswoman Susan Rowe said there were "creative solutions" to cut the deficit, such as the Murphy Walsh consultant's report - a plan that includes targeting nurses to an improved work life by reducing tasks to relieve stress and cut sick days and overtime.

The hospital estimated the report will save $4 million this year, she said.

"There's other answers besides cutting services," Rowe said.

There are various "interim solutions" that are expected to be brought in to greatly reduce or eliminate the deficit, he said.

While the measures are to be discussed at the board at its March 26 meeting, they may be discussed in camera and not released publicly at that meeting, Laughton said.

"I hope so," but the board may not be ready for that to happen, he said.

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