The Perth and Smiths Falls District Hospital (PSFDH) in Ontario paid approximately $226,000 in bank interest on a line of credit used to manage cash flow, according to investigative reporting and the hospital’s audited materials. That figure was recorded in the 2024–25 fiscal year and was reported publicly in late January 2026. Reporting and local health advocates say the borrowing reflects a funding gap between provincial allocations and rising operating costs; the interest payments represent funds that otherwise could have been spent on patient care or equipment.
Dr. Alan Drummond, a family and emergency physician in Perth and co‑chair of public affairs for the Canadian Association of Emergency Physicians (CAEP), has highlighted that some hospitals have had to use private loans to cover operational costs such as staff and supplies. Reporting indicates PSFDH used a bank‑issued line of credit as a temporary cash‑flow buffer; because the hospital’s operating funds (largely publicly funded) were used to pay interest, that meant money flowed to private financial institutions rather than directly to clinical services.
PSFDH operates two sites (the Great War Memorial Site in Perth and the Smiths Falls District General Site). The hospital’s website and audited statements say it provides health services to more than 75,000 people across its catchment. Recent reporting cites inflation and the high cost of agency nurses used to fill staffing gaps as major drivers of deficits — factors that helped push some hospitals to rely on bank borrowing.
Residents and local officials have expressed concern that interest payments reduce funds available for direct services. Investigative reporting and hospital advocates noted that the roughly $226,000 in interest paid in 2024–25 could have been redirected toward hiring more nursing staff or investing in equipment to reduce emergency‑department wait times. Hospital leadership has said it is managing financial pressures to maintain services at both sites; for confirmation of current emergency‑department hours or operational status, contact PSFDH.
