Intent to Merge – Algoma Public Health and Public Health Sudbury & Districts (Motion #23-24)

Board of Health for Public Health Sudbury & Districts, February 20, 2024

Motion moved by Despatie – Carrier

23-24 INTENT TO MERGE – ALGOMA PUBLIC HEALTH AND PUBLIC HEALTH SUDBURY & DISTRICTS

MOTION:

WHEREAS the Boards of Health for the District of Algoma Health Unit (APH) and the Sudbury and District Health Unit, operating as Public Health Sudbury & Districts, (PHSD) each passed resolutions in November 2023 to direct their Medical Officers of Health/Chief Executive Officers (MOH/CEOs) to seek provincial funding to study the potential benefits and drawbacks of a voluntary merger of APH and PHSD and report back to their respective Boards for discussion and direction;

WHEREAS the MOH/CEOs for APH and PHSD have since undertaken a process of negotiation and joint engagement to pursue this study, resulting in the confidential Impact Assessment document dated February 9, 2024 (IAD), delivered to the APH and PHSD Boards of Health;

WHEREAS the APH and PHSD Boards of Health have identified important principles to inform the negotiation, planning and implementation of any merger of APH and PHSD, including commitments:

• to the continued presence of public health personnel across the geography of the new entity with services being maintained or improved
• to work with rural and remote communities to ensure they benefit equitably from public health programs and services
• to prioritize a Health Equity lens to its work, including rural/remote, equity-seeking/vulnerable/marginalized and Francophone populations
• to have, as one of the new entity’s guiding principles, a commitment to Truth and Reconciliation
• to make investments such that the quality of programming across the new geography is brought to the higher of the levels that currently exist in the two predecessor entities

WHEREAS the actual merger of APH with PHSD (if any) will only be effected in accordance with the terms and conditions of a definitive merger agreement to be negotiated following government approval (if any), further to an additional process that will:

• include due diligence, partner and stakeholder engagement and consultation, and development of a detailed multi-year implementation plan and supporting budget; and
• address important issues including composition of the membership for the new board of health, resolution of the current discrepancy in municipal funding levels as between APH and PHSD, treatment of APH’s outstanding debt, and confirming the consent of any external parties from whom this is required;

WHEREAS the PHSD Board of Health understands and anticipates that any Voluntary Merger Business Case for APH and PHSD as submitted by APH and PHSD will be further informed and shaped by the negotiation, due diligence, consultation, and implementation plan and budget development activities expected to follow any Government approval and that the definitive merger agreement to be negotiated, if any, will reflect these activities;

The Board of Health for Public Health Sudbury & Districts therefore resolves:

• THAT it intends to merge PHSD with APH, subject to the following conditions:
  1. the Government approves the intended merger and this Board in its sole discretion is satisfied that this approval will enable APH and PHSD to successfully complete the intended merger;
  2. the Government commits to provide funding to APH and PHSD to support the intended merger, including transition costs and business continuity/stabilization funding in amounts sufficient to ensure program and service delivery stability while change is underway, and this Board in its sole discretion is satisfied that this funding commitment will enable APH and PHSD to successfully complete the intended merger;
  3. the negotiation, due diligence, consultations and implementation plan and budget development activities following Government approval do not identify any material issue that this Board in its sole discretion determines will undermine its assessment of the benefits and drawbacks of the intended merger with APH such that the Board no longer supports the intent to merge;
  4. this Board shall have reviewed and approved PHSD to enter into a definitive merger agreement that sets out the detailed steps of the merger in a manner that this Board in its sole discretion is satisfied will enable APH and PHSD to successfully complete the intended merger;
  5. the actual merger of PHSD with APH, if any, will only be effected in accordance with the terms and conditions of the definitive merger agreement, subject to any changes that have been specifically approved by the APH and PHSD Boards; and
  6. the APH Board of Health expresses its intent to merge with PHSD by resolution that this Board in its sole discretion is satisfied is substantially in accordance with the terms and conditions of this PHSD resolution.
• THAT the PHSD MOH/CEO be directed to:
  1. to further negotiate with APH to complete a Voluntary Merger Business Case for submission to the Ministry no later than April 2, 2024, substantially in accordance with the IAD and fully signed by the MOH/CEOs and Board Chairs for APH and PHSD; and
  2. communicate this resolution to key stakeholders including the Ministry and the APH Board Chair.
• THAT the PHSD Board Chair ensure timely reporting back to the Board on this matter at future meetings to enable subsequent Board engagement and direction, as the Board may deem appropriate in the expected negotiation, due diligence, consultations and implementation plan and budget development activities, including negotiation of the definitive merger agreement, as the Board may deem appropriate. Following completion of these matters, the Board will meet for full report, deliberation and decision-making regarding whether to proceed with the intended merger.

UNANIMOUSLY CARRIED

This item was last modified on February 20, 2024