Shock, horror as province cancels contracts to build health-care faciliies

Burnaby Hospital Phase 1, right, while a sign (left) indicates the location of Phase 2 of the redevelopment of the old hospital (far left). Photo by Arlen Redekop /PNG

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The B.C. government says several construction contracts for long-term care homes that were delayed as part of February’s budget have now been cancelled, as has the contract for Phase 2 of the Burnaby Hospital redevelopment.

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Mayors, hospital foundations and the provincial seniors advocate have all protested the decision, saying it means needed health-care resources won’t be built even as demand continues to grow.

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Infrastructure Minister Bowinn Ma told reporters at the legislature on Thursday that budget constraints, given a projected record deficit of $13.3 billion, meant the government had to make some tough choices.

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She said seven long-term care homes — in Delta, Abbotsford, Chilliwack, Kelowna, Fort St. John and Squamish — and the second phase of the redevelopment of Burnaby Hospital were projected to cost significantly more than budgeted.

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“There is more work for our government to do with health authorities to get costs down and under budget so that we can deliver them sustainably for communities,” said Ma.

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“In anticipation of moving to the next phase of project delivery, some health authorities did enter into contracts to help support that phase, because the projects are now operating on a different timeline, those contracts are affected, and in many cases, they’ve had to be cancelled.”

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Ma said the projects still remain part of the capital plan, with the goal of getting them completed in the future.

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In an email to Burnaby Hospital staff, Fraser Health executives said the contract with the multi-party Alliance construction group had been cancelled and that “we are working through what this means for the project and for each of you and will be in touch soon with more information.”

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Burnaby Mayor Mike Hurley says that his community feels abandoned by the province and that he didn’t find out the hospital contract was being cancelled until Wednesday.

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“Well, I’m absolutely devastated and frankly horrified by this decision. In 2018, the government said this was the most important health project in the province,” said Hurley. “Now they have seen to turn their back on Burnaby residents and east Vancouver residents and turn towards other things.”

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The mayor said that Phase 1 of the redevelopment was a needed upgrade of a hospital that was built in the 1950s but that first phase of the project only added 12 new beds.

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Phase 2 was going to include a 160-bed acute care tower, a B.C. Cancer treatment centre and a new medical imaging department.

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Kristy James, CEO of the Burnaby Hospital Foundation, said donors had committed $55 million for both phases of the redevelopment, with $25 million of that set aside for Phase 2, which was budgeted to cost $1.8 billion.

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She has previously disputed comments by Ma, who said the project has gone hundreds of millions of dollars over budget.