Ontario Wastes $1.4B in PPE; Auditor Calls for Urgent Reforms

UPDATE: Ontario has written off over $1.4 billion in personal protective equipment (PPE), with more than one billion items now deemed expired, according to a startling report from the province’s auditor general, Shelley Spence. The report, published earlier today, raises urgent concerns about the province’s ongoing procurement practices despite a significant decrease in demand for PPE since the height of the COVID-19 pandemic.

Spence’s findings reveal that Ontario continues to purchase protective gear—masks, gowns, and other essential items—at a rate consistent with the peak pandemic years of 2020 and 2021. This has resulted in a substantial accumulation of expired products, which were never utilized due to quality standards not being met. “Expired products began to accumulate in the provincial stockpile, leading to waste and inefficiency,” Spence noted in her report.

The province faced critical PPE shortages during the early pandemic, with much of its inventory already expired. In response, Ontario established Supply Ontario in late 2020 to manage PPE stockpiles. However, Spence’s audit revealed that Supply Ontario lacks an effective inventory management system, relying on inefficient manual processes to report annual costs.

As a result of these procurement strategies, Ontario signed long-term contracts for PPE between October 2020 and April 2021, committing to purchase 188 million surgical masks annually. Shockingly, only 39 million of these masks were distributed last year, equating to just 21 percent of the total. Furthermore, Supply Ontario procured 25 million N95 masks for the 2024-25 period but distributed only 5.5 million, or 22 percent.

Spence’s report estimates that if current usage levels remain unchanged, approximately 376 million surgical masks and 96 million N95 masks, valued at around $126 million of taxpayer money, will expire between 2025 and 2031. The report underscores the pressing need for the province to reassess its PPE usage and distribution strategies.

Despite the vast quantity of PPE stockpiled, Spence revealed that a mere two percent of these items reach hospitals, which report that the province is unable to meet their needs. This highlights the urgent call for action as Ontario’s healthcare system struggles to ensure adequate protective gear for frontline workers.

In response to these alarming findings, Spence has recommended that Supply Ontario implement a robust system to integrate and consolidate inventory records from various sources. She also urged the province to conduct a value-for-money analysis to guide better purchasing decisions.

Supply Ontario has acknowledged all six of Spence’s recommendations and is expected to take immediate steps toward reform. The province must prioritize increasing PPE usage, particularly in hospitals, to mitigate waste and ensure the safety of healthcare workers.

As Ontario navigates these challenges, the implications for public health and fiscal responsibility are profound. The need for effective management of PPE resources has never been more critical. The province’s ability to act on these recommendations will be closely monitored as healthcare systems across Ontario continue to face unprecedented pressure.

Stay tuned for more updates on this developing story.