‘LOCAL SHARE’ OF 2 NEW HOSPITALS COULD HIT $225 MILLON — AND MAHC WANTS CASH COMMITTED BY SEPTEMBER
Mark Clairmont | MuskokaTODAY.com
MUSKOKA — Doug Ford’s off-the-cuff remark about $1 billion to build two new hospitals in Muskoka stunned many — including local health-care providers.
But it’s nothing compared to today’s breath-taking announcement that pretty much confirms that number.
Muskoka Algonquin Healthcare says he premier may not be far off the mark when the first patients are seen in five to 10 years.
And with a provincial funding formula that calls for about a 30 per cent “local share” cost contribution — a lot of Muskoka charitable donations are headed to hospitals next tax season.
The exact numbers remain fluid at this point (while also taking into account rising inflation now), but compared to previous announcements the funding graph is skyrocketing.
Today’s latest announcement by the hospitals management shows their most up to date projection is that it’s likely going to cost Muskokans closer to $225 million at least.
And MAHC needs that money committed sooner than later.
As in not too late next year 2023 — preferably by September to get to the front of the queue with other Ontario hospitals competing for the same Ministry of Health budget funds. (Their plan is to be submitted by the end of next year, but the early recommended deadline would help secure funding.)
That’s nine months away — a target the province suggests could see MAHC’s application looked upon more favourably to satisfy that early bird request.
So expect a full-court fundraising press from MAHC and its two hospital foundations in Bracebridge and Huntsville — along with anyone else willing to donate or raise money for their club or organization’s pledge.
Public meeting are being planned for January to appeal directly and expeditiously to the public.
The reasons?
MAHC board chair Moreen Miller says it’s simply the cost of health care today.
She says the need is there for MAHC to act — and now — citing aging infrastructure.
The status quo is not a sustainable or healthy option, she says.
“The Ministry of Health pays for most of the cost of the new buildings. And the local communities have to pay a share of the entire project.
“The communities’ share can be up to 30 per cent of the total project cost, including all furnishing, fixtures and equipment in the buildings — plus any revenue-generating space such as parking lots and gift shops that the ministry won’t pay for.”
So if you or a group you belong to has in the past donated say bingo cash for a new medical hospital bed or some other patient care service, get ready to dig deeper.
MAHC’s multi-million ask is a lot of bingo numbers calling.
Miller adds in a one page release Tuesday — leading up to the this weekend’s Christmas giving time — that since 2017 MAHC has been looking at ways to raise its community share through municipal governments and private individual donations, which she says compare among the best in Ontario.
This is all part of ongoing planning, which first predicted that in 2019 dollars that the local share would be $129 million.
Since then — with COVID and also the changing role of hospitals now and in the future (such as single rooms for all) — that share cost rose to $167 million in 2022 dollars.
But that’s not nearly the end of it.
By 2027 when a request for proposals is sent out $225 million is that latest future number MAHC — and Muskoka-East Parry Sound — are left eyes wide opened staring at.
The builds would take three to four years making opening about 2030-31.
And as anyone in the midst of buying their Christmas turkey, trimming and gifts this week; or has to meet the mortgage bill this month is a best-case scenario, say consultants looking at inflationary pressures.
But Miller says she is “confident” that “in the months to come” that MAHC’s ‘Local Share Committee’ can find a way to make it work “collaboratively” with the public, businesses and local town and district governments.
That could also include a special temporary local tax levy.
The sooner the better to beat spiralling costs, she says.
Operational staffing costs would still be paid annually by the province.
MAHC begins this week going out to councils (Gravenhurst on Thursday) to begin soliciting long-term commitments — in the short-term — from elected officials.
Miller sat down last week with local mayors and apprised them of the situation.
To date MAHC has received around $115,000 from Huntsville, $230,000 from Bracebridge, and $ 1.6 million from the district. Back in April the province gave them $14 million to prepare its plans.
This at a time of year when councils have already passed budgets or are close to doing so. They may also have to juggle their own future community needs in addition, such as jobs and housing, and may not be able to be as generous as MAHC sees its needs.
“For Muskoka’s future hospitals to proceed to tender, we have to show how our community will pay for its share of the project,” said Miller. “And if we can’t demonstrate that our plan will not move forward.
“We have the Ford government’s support and commitment to contribute approximately three quarters of the funds, and that is a tremendous opportunity for our region to leave legacy for future generations.”
Miller said it’s possible the sale of the existing SMMH lands could contribute to MAHC’s share of contributions to the final cost. The same with its lands in Huntsville at the old hospital and Fairvern LTC home.
Bracebridge will see a whole new site, while a new Huntsville hospital would be located elsewhere on is present property deeper into the woods and closer to Hwy. 60.
But she said those lands, or parts of them, may yet remain in MAHC’s hands for related hospital uses — and perhaps not put to better uses for say affordable housing.
Gravenhurst residents and patients, she said, would be served by the Bracebridge hospital site like Muskoka Lakes and Lake of Bays in Huntsville.
Yesterday hospital staff also learned of the massive fundraising campaign to come.
The Dec. 20 announcement comes a day after MAHC received confirmation that it would receive $800,000 in annual operating cash for a new MRI, when it is purchased and installed some time in 2024. See that story here.
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