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Island Health lay-offs and executive role mergers

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Island Health is the health authority for Vancouver Island including the Gulf Islands and some northwest parts of the mainland coast.
CANADIAN NATIONAL NEWS & ANALYSIS

Tuesday July 8, 2025 | VICTORIA, BC [Posted at 12:30 pm]

by Mary P Brooke | Island Social Trends


Island Health has made moves to deal with the efficiency of organization and costs.

Now that COVID-level overhead and the business of digitizing have mostly passed, Island Health has taken steps to try and achieve organizational efficiency and cost control.

The health authority for Vancouver Island says it has laid off several executives, as well as one vice-president (VP) as part of organizational restructuring.

royal jubilee hospital, victoria, island health
Royal Jubilee Hospital in Victoria, BC.

One VP had retired and two VP portfolios were merged. There has been a permanent combination of the People and Communications portfolios under one vice-president.

Island health, vision
Island Health vision statement on their website, 2025.

Addressing complex global health-care challenge amidst financial pressures has led to the changes, according to a statement from Island Health on July 7, 2025.

The completion of a shift to digital systems is another reason for staffing changes.

Officially there is no mention of political pressures but during the Fall 2024 election campaign the NDP was pressured about bloat in the health-care system at the executive level, particularly Island Health.

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Leadership profile:

The president and CEO of Island Health is Kathy MacNeil.

kathy macneil, island health, sooke
Island Health President and CEO Kathy MacNeil at the Island Health public forum in Sooke, Dec 8, 2022. [Island Social Trends]

There are 10 directors on the Island Health Board, chaired by is Leah Hollins who has held that role since 2017.

island health, board of directors
Island Health Board of Directors [as at July 2025]
leah hollins, island health, board chair
Island Health Chair Leah Hollins at the January 31, 2019 board meeting held at the Juan de Fuca center in Colwood. [by Mary P Brooke / Island Social Trends]

Island Health medical staff are governed by applicable legislation, medical staff rules and bylaws, and Island Health policies.

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Cost cutting and system review:

Island Health has submitted this statement to Island Social Trends:

  • Over the past five years, Island Health has received significant funding increases to meet complex global health-care challenges. While we’ve made progress that we can be proud of, we have more work to do to achieve the level of performance we aspire to for our patients, clients, residents and care teams. 
  • With financial pressures increasing across the province, we must maximize our annual funding by reducing unnecessary costs and redirecting resources to meet patient needs.
  • To support this, we’ve launched the Better Care, Better Value initiative. This work will help ensure that we are focused on the services, outcomes and experience that matter most to patients. 
  • This initiative will identify efficiencies and improvements across our system, ​focusing on:
    • clinical and administrative workflows,
    • supplies, contracts and drugs,
    • workforce optimization, and
    • clinical services redesign
  • In support of this work, Island Health’s organizational structure was adjusted last month to reduce the number of VP positions by one (with the permanent combination of the People and Communications portfolios under one vice president) and a number of executive director positions were consolidated and realigned resulting in several layoffs of non-contract leaders.
  • These changes are being made to ensure we are maximizing value and better meeting the needs of those we care for, and those who provide care.
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Digital progress:

Island Health takes pride in digital achievements over recent years, including implementing their electronic records system.

These points are about Island Health iHealth staff (as provided by Island Health):

  • Island Health is proud of the achievements we have made in implementing the IHealth Electronic Health Record at over 300 sites across our region, including full functionality at our busiest hospitals.
  • We want to recognize the excellent work and commitment of the IHealth project team for the successful implementation of this important clinical resource.
  • The most recent IHealth project phase is now complete. Positions created specifically to support this work are no longer required.
  • We know that members of the project team have made significant contributions to patients, staff and medical staff during their time with us. We honour these people for the commitments and sacrifices they have made during their time with us and wish them many successes wherever their journeys take them next.
  • The positions no longer required were funded by the IHealth project budget which is separate from Island Health’s annual operating budget.
  • The Advanced functionality of the Electronic Health record continues to be an organizational priority for Island Health and we are committed to implementing these workflows and functionality, including computerized provider order entry (CPOE), at more hospital and clinical service delivery sites in the future.
  • Support for the electronic health record will continue to be provided by clinical solutions staff and other information technology and professional learning support staff.
  • Significant advances have been made during this phase of IHealth implementation including improved medication safety, improved patient flow within the activated sites, implementation of a new surgical and anaesthesiology system and improved efficiency in creating and distributing clinical documents. Patients also now have access to their laboratory and diagnostic imaging results as well as some clinical documents that are now available on the MyHealth patient portal.
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Local, provincial and federal news and analysis posted daily at IslandSocialTrends.ca.

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