Southern Health is reporting a budget surplus through the first three-quarters of the fiscal year. Ken Klassen is the Vice-president of Finance and Planning for the RHA. He reports a surplus of $5.8 million has been achieved. To put it into perspective, Klasses explains on the $400 million budget, the surplus amounts to 2.5%.

Ken KlassenKlassen says all the RHAs in the province are working individually his year to move the health care system forward as a whole. He explains the RHA's are finding ways to cut costs by conducting reviews of the operations. He adds they also received unforeseen funding.

Klassen calls the news of a surplus excellent for them, adding a surplus allows them to utilize funds in many ways. He explains some of the possibilities include: redirecting, investing, and saving. When redirecting, Klassen points out the RHA usually redirects funds to high priority areas. When investing, the RHA looks to opportunities that may produce cost avoidances. With regard to saving, the RHA can put the surplus funds into an accumulated surplus account which can aid future projects.