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Counting the days...

BY HEIDI ULRICHSEN With any luck, the people of Greater Sudbury will see cranes and construction workers at the one-site hospital by late February. The project is supposed to be completed in two to three years (2009 or 2010).
New_Hospital_290

BY HEIDI ULRICHSEN

With any luck, the people of Greater Sudbury will see cranes and construction workers at the one-site hospital by late February. The project is supposed to be completed in two to three years (2009 or 2010).

The new hospital will feature state-of-the-art technology and have 17 operating rooms, 3,000 employees, 800 volunteers, and a medical, dental and midwifery complement of 260.

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Nearly 11 years ago, officials from the city’s three hospitals began the controversial process of merging their operations after being ordered to do so by the provincial Health Services Restructuring Commission.

The commission also laid out plans for the hospitals to come together under a newly expanded hospital building at the Laurentian site.

In 1998, the province announced it would provide $88 million in funding for the one-site hospital, which was expected to cost $132 million and be completed by 2002.

The Heart and Soul Campaign was launched in 2000 to pay for the hospital project, along with two other health care buildings.
In 2003, Heart and Soul stopped collecting money because they had raised $24.5 million in just over three years, far exceeding the campaign’s initial target.

But that was when the good news ended. The hospital’s board of directors decided in 2001 hospital construction would be halted after Phase 1 because of enormous cost overruns.

By 2002, provincial consultants hired to do an operational review of the financially ailing hospital concluded it would cost $363 million to build the one-site hospital.

There’s been a number of announcements over the past few years as politicians and hospital officials attempted to get the project back on track.

The province announced last year they will pay for the project under the Alternative Financing and Procurement Strategy. The lowest-bidding contractor will borrow money privately to finance the project.

When construction is complete, the province will pay the contractor back. The province announced in 2006 they will pay for 90 percent of construction costs.

Here’s a breakdown of how it all happened.

1996


June

The Health Services Restructuring Commission begins its work to merge the city’s three hospitals under one administration. Other hospitals in the province are undergoing the same process.

December

The commission releases its directions – that Sudbury General, Laurentian and Memorial hospitals will consolidate all programs at a new one-site hospital at the Laurentian site by April 30, 1999.

1997

January

Janice Skot, the CEO of Laurentian Hospital, urges officials from all three hospitals to work together to create a one-site hospital.

The Sisters of St. Joseph say they can only work in such a system if they have their own corporation, board of directors and chief executive officer.

February

Graham Scott, one of two facilitators appointed by the Health Services Restructuring Commission to amalgamate the three hospitals, announces talks have failed.

The Sisters of St. Joseph oppose the commission’s directions and take their fight to the courts.

At this point, the one-site hospital is estimated to cost $85 million.

October

Joe de Mora is appointed the new CEO of Sudbury Regional Hospital.

November

Contract signed between the Sisters of St. Joseph and Sudbury Regional Hospital. The Sisters were to continue to run St. Joseph’s Health Centre until the one-site hospital was completed, with their own board.

December

De Mora announces the Ministry of Health had granted approval to legal agreements transferring the assets from Sudbury’s three hospitals to Sudbury Regional Hospital.

1998

January

The province announces $1.1 million in funding to partially cover the costs of cushioning the blow for hospital employees who would lose their jobs during the restructuring of the hospital system.

June

Designs for the new “superhospital” are unveiled. Northern Life reports it will have 18 operating rooms and an emergency room with roughly the same space as St. Joseph Health Centre and Sudbury Memorial emergency departments combined.

July

Chris Hodgson, Natural Resources minister at the time for the Harris Conservative government, comes to Sudbury and announces an additional $30 million in hospital construction funding.

The hospital is estimated to cost $132 million – of which the province was paying $88.4 million – and is expected to be open in the spring of 2002.

November

Construction begins on Phase 1 of the one-site hospital.

1999

December

An Oracle Poll shows 70 percent of Sudburians feel services at the one-site hospital will either improve or remain intact after restructuring. In March 1997, 67 percent of those polled had felt hospital services would deteriorate as a result of restructuring.

2000

January

The Heart and Soul campaign is launched. The campaign, which was to raise $17.5 million in five years, would support three of the city’s health-care projects; the one-site hospital, the expansion of the Northeastern Ontario Regional Cancer Centre and St. Joseph’s Villa.

February

Sudbury MPP Rick Bartolucci, then in opposition, writes in a column in Northern Life saying the province should pay a larger share of the hospital price tag.

“To date, the province has committed $88 million to the four-year $132 million hospital expansion. (That’s the province’s figure. Mark my words, at the end of the day, this project will exceed $180 million, and we’ll be left to foot the bill unless we force the province to pay up). We are being told we must raise $44 million as a community.”


Region gives $1.8 million for construction costs – bringing region’s share up to $5 million. De Mora says the hospital will now cost $143 million to build.

September

Hospital board finds out the total cost estimate for the hospital building had risen to almost $168 million.

October

Hospital board asks for a government review of hospital finances due to operating deficits and skyrocketing prices for hospital construction.

De Mora, who had been the hospital’s CEO since October 1997, leaves for the top job at Kingston General Hospital. David Bronicheski, vice-president and chief financial officer, also leaves.

Vickie Kaminski is appointed the acting CEO of the hospital.

2001

May

Sudbury Regional Hospital board says construction on the one-site hospital will be halted after the completion of Phase 1, likely in the coming winter. Phase 2 has not been started.

The board had received project bids of $209 million from their contractors.

Kaminski is officially hired as the new CEO of Sudbury Regional Hospital.

June

The hospital announces an operating deficit of $14 million for 2000-2001.

October

The Ministry of Health and Long-Term Care announces an operational review of how “every penny” is spent at Sudbury Regional Hospital.

2002

April

Although construction on the hospital had been halted, the province announces an additional $20.4 million in funding for the project.

Northern Life reports the money may not cover the funding shortfall.

Kaminski says the beginning of Phase 2 construction would likely begin in a few months. She says she can’t imagine consolidation of services at the one-site hospital would take five years, and three years was even a stretch.

May

Operational review consultants conclude the cost to complete the one-site hospital has increased to more than $363 million.

This figure includes decommissioning, commissioning, furniture, equipment and information technology, which were not included in previous estimates.

June

Sudbury Regional Hospital announces an operating deficit of $26 million for 2001-2002.

2003

January

The results of the government’s operational review of the hospital are released.

February

Graham Scott is appointed to implement a multi-year recovery plan to improve the hospital’s finances.

May

The Heart and Soul campaign stops fundraising because they have raised $24.5 million in just over three years, far exceeding the campaign’s initial target. Funds are still being collected from those who pledged to the campaign in the past.

June

After working with the government on a multi-year recovery plan, hospital officials announce their operating deficit for 2002-

2003 is $596,000.

2004

April

George Smitherman, Health and Long-Term Care Minister for the McGuinty Liberals, announces the government would cover 80 percent of construction costs for the new hospital building.

He says construction on Phase 2 would begin in late 2005, and the one-site hospital would be up and running by late 2007.

June

Hospital officials announce the operating deficit has been reduced to just $66,000.

2005

January

Sudbury Regional Hospital receives $3.1 million from the province as a reward for their financial prudence stemming from the multi-year recovery plan. Less fortunate hospitals received money to pay severance packages for staff whose jobs were cut.

February

During an editorial board meeting with Northern Life, Kaminski says the hospital will probably have to borrow money to cover the other 20 percent of construction costs not covered by the government.

She also says they’re saved about $13.5 million from operations because of the hospital’s multi-year recovery plan by reducing hospital stays, moving some surgeries out of the hospital and making cuts in food service.

April

There’s a public uproar after the Ontario Public Sector Disclosure Act shows Kaminski received a salary increase of almost $117,000 in 2004-2005, bringing her pay to $342,000.

June

Sudbury Regional Hospital announces it recorded a $1.5 million surplus for 2004-2005. The surplus comes from cuts and money from province.

Board chair Geoffrey Lougheed says he hopes tender documents for Phase 2 of the one-site hospital project will be in sometime at the end of October and hopefully a shovel will be in the ground again by the end of 2005.

October

Bartolucci announces construction on Phase 2 of the one-site hospital will begin sometime during 2006, with completion slated for 2008 or 2009.

At the same announcement, Bartolucci says the project will be paid for by the province’s Alternative Financing and Procurement (AFP) Strategy.

The lowest-bidding contractor will borrow money privately to finance the project. When construction is complete, the province will pay the contractor back.

The Sisters of St. Joseph ask for proposals for the future use of the St. Joseph’s Site of Sudbury Regional Hospital, which will no longer be in use once the one-site hospital is in use.

CUPE Local 1623, which represents maintenance and clerical workers at Sudbury Regional Hospital, holds a meeting at the Steelworkers Hall in protest of the AFP strategy.

They say private financing of public buildings is much more expensive for taxpayers because the government can borrow money for projects at a much lower interest rate than private companies.

The union is also concerned private financing deals might give companies the right to take over hospital maintenance work and other services, making sure jobs are privatized.

2006

March

There’s an announcement that Phase 2 of the one-site hospital project will go to tender by June 30 and bidding will end by the end of November.

June

The province announces it will cover 90 percent of construction costs for all hospital projects in the province, including Sudbury Regional Hospital.

Previously, the province was only covering 80 percent of construction costs for Phase 2 of the city’s one-site hospital.
Bidding begins on Phase 2 of the one-site hospital construction contract.

Hospital officials announce at their annual general meeting they have ended the year with a $297,076 surplus for 2005-2006, which is substantially smaller than its $1.5 million surplus in 2004-2005.

November

Bidding ends on Phase 2 of the one-site hospital. The bids will be evaluated over the next few months and the successful bidder is expected to be named in early 2007. Construction is scheduled to begin in late February 2007.

2007

Early 2007

Successful bidder on Phase 2wo of the one-site hospital contract is expected to be named sometime in the next month (by mid February).

February

Construction on the hospital is scheduled to begin in late February.

2009 or 2010

Phase 2 of the one-site hospital project is expected to be completed 24 to 36 months after construction is started.


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