BC reduces CCRHD contribution over $36 million for Cariboo Memorial Hospital upgrade

Courtesy of the Cariboo-Chilcotin Regional Hospital District:

The Province of B.C. and Cariboo Chilcotin Regional Hospital District (CCRHD) have reached an agreement on cost sharing for the Cariboo Memorial Hospital (CMH) redevelopment project. The agreement will see the total contribution from the CCRHD substantially reduced from 40% to 30% of total project costs to a maximum of $109.96 Million out of the total $366.5 million forecasted completion cost. This will result in savings for the CCRHD of $36.65 million which were previously committed to this project.

The CCRHD has forecasted that debt will not be required for this project. Instead, the CCRHD will use approximately $52.3 million in capital reserves to finance a substantial portion of project costs. The reserves that are available were generated over the course of ten years in anticipation of this project. The remaining costs will be generated through an increase to property tax rates of $5 per $100,000 assessed value, for a total rate of $75 per $100,000 assessed property value. This increase will generate $82.96 million in revenue over the next six years, resulting in a net increase of $17 to$20 for the average homeowner excluding changes to assessed values. This revenue will support the CMH redevelopment project and provide funds for any future capital requirements.

“We sincerely appreciate Minister Dix’s recognition, through this agreement, that it was necessary to reduce the proportion of funds being provided by the Cariboo Chilcotin Regional Hospital District,” said Al Richmond, CCRHD Chair & Cariboo Regional District Area Director, Electoral Area G (Lac La Hache / 108 Mile). “The $36.65 million in savings generated will help us maintain a stronger fiscal position going into the future and able to meet future spending requirements, and supports the Board’s long term financial planning approach on healthcare infrastructure projects.”

The CMH redevelopment project includes an addition to the existing hospital as well as renovations to the existing facility. The addition will be three storeys, plus a basement, and approximately 9,300 square metres (100,100 square feet). The redevelopment will add 25 in-patient beds for a total of 53. Work on the CMH redevelopment project is being performed through Graham Design Builders LP, and will be completed in two phases. Phase 1, which includes the addition, will begin in spring 2023 and is expected to finish in fall 2026. Phase 2, which includes renovations to the existing hospital, will begin in fall 2026 and is scheduled to be complete in early 2029.