Introducing the 2015/2016 Audited Financial Statement
Download the 2015/16 Audited Financial Statements
OTN enters into an annual accountability agreement with the MOHLTC which stipulates the maximum amount of Base Funding, as well as, the maximum funding available for One-Time Projects. Funding is also generated from Canada Health Infoway(CHI) for the Telehomecare Project, as well as from self-generated fee for service arrangements. The fee for service revenue streams include:
- Consulting work – Revenues earned outside Ontario by OTN leveraging its expertise in telemedicine to provide consulting services to other entities in the development/assessment of their telemedicine activities.
- Set Up & Installation fees – Revenues earned from installing video conference equipment at client sites.
- Membership fees – Revenues earned from membership fees charged to non-MOHLTC funded organizations.
- Premiums Services – Revenues earned from providing full service planning, promotion and support of an telemedicine event, as well as recording and streamlining videoconferences to the web.
In fiscal year 2013/14 OTN utilized the maximum of $22.5M of Base Funding and $9.1M for One-Time Projects from the MOHLTC and $3.2M for the Telehomecare project, from Canada Health Infoway. Remaining revenues came from self-generated sources and interest income. Base operations funded by the MOHLTC, combined with OTN self-generated revenues are used to enable and facilitate the use of videoconferencing and information and communications technology to connect patients, providers and health care professionals throughout the province for the benefit of residents and the Ontario health care system. Primary drivers of expenses, as a percentage of revenue are personnel (83%), marketing & outside services (4%), overhead costs (Rent, insurance and office supplies – 7%) and technology costs (hardware, software and telecommunication -5%).
During the 2013/14 fiscal year, expenditures were made and revenues recorded against the following One-Time Projects:
- Telemedicine Network Circuits – Funded solely by the MOHLTC, this project, which began in 2011, was to assume the dedicated telemedicine circuit costs from eHealth Ontario and continues to add and sustain these circuits to support telemedicine adoption. Expenses are technology (90%), personnel and outside services costs (10% combined).
- Telehomecare – Funded by Canada Health Infoway and MOHLTC as a multi-year project to expand the program. Expenses are driven by personnel (71%), technology (15%), marketing & outside services (11%) and overhead (3%)
- Telemedicine Transformation – Funded solely by the MOHLTC to build infrastructure to help make OTN’s services more accessible for its Members. Projects include increasing PCVC capacity, automating provisioning, developing a platform for eConsult services, launching and updating a Telemedicine Directory and transitioning users to OneID for access management. Expenses are driven by personnel (88%), marketing & outside services (6%) and overhead and technology (6% combined).
- Teleopthalmology, Telestroke & Other Projects – These represent smaller projects, funded solely by the MOHLTC for enabling access to health care in remote areas of the province. Expenses are driven by personnel, outside services in the form of Telestroke Doctors, as well as equipment, depending on the project.
During the year, the funding OTN receives from various sources is applied directly against expenses. At year end, Generally Accepted Accounting Principle adjustments are made whereby certain expenditures are capitalized to the Balance Sheet in the form of Prepaid Expenses, Inventory and Capital Assets. These reallocated expenses have corresponding amounts deferred to the Balance Sheet in the form of Deferred Grants and Deferred Revenue. As inventory items are deployed and Capital Assets amortized, revenue is recorded at the same amount on the Income Statement as the Amortization of Deferred Grants. Prepaid amounts that are expensed during the year have corresponding revenue recorded within the Base Operations revenue line.
Who is OTN?
OTN is a not-for-profit organization funded by the Ontario Ministry of Health and Long-Term Care charged with building a sustainable and responsive virtual care system.