The Privatization of Hospital Laundry Services in Saskatchewan
The government’s plan to privatize hospital laundry services will have a negative impact on Saskatchewan’s local economies. The decision to close five regional laundries and centralize laundry services through Alberta-based K-Bro Linen will decrease the income of the residents of Saskatchewan between $14 and $42 million over the next 10 years in comparison to public options. The laundry plant closure in Prince Albert alone will result in 74 jobs lost, cause a decline in labour income of $2.5 million in the region, and a decline in regional GDP of $3.7 million. Privatization will also redistribute income away from workers and other residents of the province in favour of a private corporation whose major shareholders reside outside of the province. That is the conclusion of a new report by University of Winnipeg economists Hugh Grant, Manish Pandey and James Townsend. “Short-Term Gain, Long-Term Pain: The Privatization of Hospital Laundry Services in Saskatchewan” concludes that while privatization may garner limited, short-term savings, the long-term costs borne by Saskatchewan residents will be significantly higher.
