Gravenhurst council has agreed to contribute $1 million to the local share to build two new hospitals in Muskoka but it comes with four conditions.
They are that the money is still needed when construction is scheduled to start in 2029, the financial commitment is not fulfilled until construction is about to start, the southernmost site in Bracebridge be prioritized as the preferred location, and every effort is made by Muskoka Algonquin Healthcare (MAHC) to provide either a walk-in clinic or urgent-care clinic in Gravenhurst.
The money will be earmarked in the newly established Health Services Reserve Fund. Half of the money will be transferred from the Tax Stabilization Reserve with the remaining covered through investment income.
“It remains a challenging yet mandatory component of hospital funding and there remains a significant gap in the collection of those local share funds as we inch towards the late Sept. deadline to put pen to paper as far as what that plan looks like,” explained Scott Lucas, Gravenhurst’s Chief Administrative Officer, during the town’s Aug. 15 council meeting.
The local share, which needs to be raised by the six municipalities in Muskoka, is estimated to be $225 million. That will cover about 30 percent of the $967 million hospital redevelopment project. The remaining 70 percent will be covered by the Ministry of Health.
Lucas explained the local share covers things like furnishings, fixtures, equipment, and other aspects of hospital care not funded by the ministry.
He continued that without a plan to raise the local share, the ministry will not fund the project.
In a June 2023 report to council, Lucas wrote MAHC is dealing with a “significant shortfall” when it comes to the local share. He confirms in his latest report the shortfall remains “substantial.”
However, Huntsville council recently agreed to contribute $10 million towards the local share. In his report, Lucas believes Bracebridge staff will submit a report to council in Sept. recommending “they be an equal value contributor with Huntsville.” Meanwhile, he says “substantial, yet to be fully approved” commitments could be coming from the District of Muskoka prior to the Sept. submission deadline to the ministry.
With one of the conditions for Gravenhurst’s contribution surrounding where the hospital will be located, Lucas noted a final decision has not been made on where it will be. In April 2023, it was announced by MAHC that 1975 Muskoka Beach Rd. is the preliminary preferred site.
Lucas said he expects the location will be more concrete once MAHC submits their plan to the ministry at the end of next month.
Coun. Randy Jorgensen pointed out the possibility of the local share – and overall cost of the project – rising prior to construction starting. In Dec. 2022, Moreen Miller, Chair of the MAHC Board of Directors, noted the overall project was estimated to cost $561 million in 2019 with the local share coming in around $129 million.
“Access to trusted and dependable health care matters to our residents and this investment by the Town of Gravenhurst recognizes that,” said Mayor Heidi Lorenz. “Building these new hospitals will benefit our community for generations to come.”
Lucas noted in his report that many Gravenhurst residents use the Royal Victoria Regional Hospital in Barrie and Orillia Soldiers Memorial Hospital. He wrote that Soldiers is working towards a redevelopment project, too. While he didn’t provide a timeline for when it will begin, he suggested that Gravenhurst may be asked to assist with its funding as well.
