New Niagara Hospital Made Possible by Innovative Financing
Ontario Hospital Association
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Toronto, Ontario, M5V 3L1
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Friday, September 16, 2005
The use of an innovative financing model is making possible the construction of a state-of-the-art hospital in St. Catharines said Hilary Short, President and CEO of the Ontario Hospital Association (OHA).
“Today’s investment will contribute to improved working conditions, improved operating efficiency and, most importantly, improved patient outcomes,” said Short. “We encourage the government to continue using innovative financing models where appropriate to fund the construction and renewal of hospitals across Ontario.”
The OHA estimates that Ontario’s hospitals face up to $8 billion in capital re-development costs. Studies show that the average Ontario hospital is 43 years old.
In November 2003, the OHA released a report entitled, “Capital Planning and Investment in Ontario’s Hospitals: A Sustainable and Comprehensive Approach to Meeting Patient Care Needs”.
The report recommended that governments begin to view hospital capital spending as a strategic investment in the health care system, and allow hospitals to use a range of mechanisms, including debt instruments such as bond issues, municipal levies and alternative financing models, to raise the funds for needed capital improvements.
In late May 2005, Public Infrastructure Renewal (PIR) Minister David Caplan announced a $5.3 billion strategy to upgrade, expand and build new hospitals over the next five years. Part of this strategy is the Alternative Financing and Procurement (AFP) model, which allows hospital to involve the private sector in project financing and construction while leaving the finished product publicly-owned and controlled.
“The OHA supports the use of innovative financing models because, by harnessing private sector capital and expertise, hospitals can move forward quickly with projects that will benefit patients and their communities,” said Short. “We believe that, without this approach, many communities would simply not get the funding they need to improve their hospitals.”
The AFP model will be used to fund new hospitals slated for construction in North Bay, St. Catharines and Sault Ste. Marie. Montfort Hospital in Ottawa, Mississauga’s Credit Valley Hospital and Trillium Health Centre, the Quinte Healthcare Corporation's Belleville site, and Toronto’s Sunnybrook and Women's College Health Sciences Centre and the Centre for Addiction and Mental Health have been selected for upgrades and expansions to be financed using the AFP model.
“Investments in hospital capital are investments in improved patient care,” said Short. “We welcome the investments made to date, and look forward to further investments like these in the months and years ahead.”
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For further information:
OHA Public Affairs
416-205-1305