{"id":76686,"date":"2019-10-30T04:34:09","date_gmt":"2019-10-30T08:34:09","guid":{"rendered":"https:\/\/huntsville.dopperonline.ca\/?p=76686"},"modified":"2019-10-29T08:35:14","modified_gmt":"2019-10-29T12:35:14","slug":"we-believe-mahcs-plan-for-two-new-hospitals-will-be-rejected-by-the-province","status":"publish","type":"post","link":"https:\/\/doppleronline.ca\/huntsville\/we-believe-mahcs-plan-for-two-new-hospitals-will-be-rejected-by-the-province\/","title":{"rendered":"We believe MAHC\u2019s plan for two new hospitals will be rejected by the Province"},"content":{"rendered":"

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By Dave Wilkin and Ross Maund<\/strong>
\nMAHC\u2019s Two New Hospital Plan \u2013 The Big Picture<\/strong>
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MAHC\u2019s recently published Stage 1B Capital Plan submission calling for two brand new hospitals is a significant milestone in a journey that began almost eight years ago. However, as we have written previously, we have concerns with this plan<\/a><\/span>, mostly around its affordability. Nine comparable hospital projects<\/a><\/span> show MAHC\u2019s plan is triple the average cost-per-capita.<\/p>\n

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In terms of the local share portion of the total cost, it is being rationalized down and minimized. This is particularly troubling, given the cost escalations in new equipment, technology and construction. MAHC\u2019s very experienced consulting firm, Hanscomb<\/a><\/span>, on page nine of their report to MAHC<\/a><\/span>, estimates our local share at $180 million of their estimated $705 million total cost (both in 2024 escalated $ costs, when construction may begin). Using this $180 million number, less $20 million from additional foundation commitments, translates to about $3,200 on average per household for the roughly 50,000 served dwellings. We hope municipal governments calculate the most likely cost of this plan for their taxpayers. Affordability (locally and provincially) explains why most hospitals (particularly of our vintage) are incrementally upgraded\/expanded, not replaced.<\/p>\n

We now turn to a bigger picture. Locally, such a massive capital project will crowd out investments in other high-priority needs, including affordable housing, Long-Term-Care (LTC), attracting new businesses, and addressing energy transition\/climate change (Note – doubling of the existing hospitals\u2019 size is not helpful to this cause).<\/p>\n

Provincially, Minister of Health Christine Elliott is hard at work reforming Ontario\u2019s health care system. Parts of her plan are already underway or evident, with more to come. We see an over-arching theme to bend the escalating healthcare cost curve down, without compromising quality\/service levels. Clearly cost growth can’t continue at its historic pace, but instead the system faces growing structural headwinds which will accelerate it<\/a><\/span>: an aging demographic, increasing longevity, and technology\/construction\/labor cost escalation. Healthcare spending in Ontario today is 42 per cent of all government program spending, with a forecasted growth rate over double the core inflation rate<\/a><\/span>.<\/p>\n

To that end, we anticipate the following shaping the provincial health system:<\/p>\n