(Updated) Hospital to use private financing, procurement

The new Sault Area Hospital will be built and bankrolled using an alternative financing model similar to that announced for new hospitals in North Bay and Ottawa, Premier Dalton McGuinty announced this afternoon.

The hospital will be publicly owned and operated, and also publicly accountable, but financing, construction and procurement will be farmed out to the private sector, which has a better record of bring such projects in on time and on budget, the premier said.

The new funding model is currently being applied to construction of North Bay's new hospital and Montfort Hospital in Ottawa, set to double in size by 2007.

Arrangements at those hospitals have been criticized by union officials and the Ontario New Democratic Party, which believes McGuinty is moving to privatize hospitals.

The funding idea is an attempt to shift risk from cost overuns and construction delays to the private sector.

The consortium selected to finance and build the new Sault Area Hospital would receive no money from the province until the institution opens it doors to patients. The following is the the official news release issued today by the Office of the Premier:

****************** McGuinty Government helping build new state-of-the-art hospital in Sault Ste. Marie

New Facility Will Reduce Wait Times And Improve Care For Thousands

SAULT STE. MARIE, ON, Aug. 18 - The McGuinty government is investing in a new, state-of-the-art hospital in Sault Ste. Marie to help reduce wait times and improve access to quality health care services for residents, Ontario Premier Dalton McGuinty announced today.

"This investment will provide better access to better care for thousands of people living in Sault Ste. Marie and surrounding areas," said Premier McGuinty. "By modernizing our hospitals, we're making real, significant progress on our plan to improve access to high-quality health care for all Ontarians." The new Sault Area Hospital (SAH) will have 289 beds and will give residents access to a full range of hospital services, including acute care, pediatrics, surgical care, mental health programs and a new cancer radiation therapy facility. The hospital will consolidate local health care services by joining together the former Plummer Memorial and Sault Ste. Marie General hospitals.

The new facility will be located at the current site of the F.J. Davey Home. Minister of Public Infrastructure Renewal David Caplan and local MPP David Orazietti joined the Premier at the future site of the SAH today. "A new, publicly owned hospital will give Sault area residents better access to a full range of hospital services," said Orazietti. "This project is important to everyone who lives in this city and throughout the Sault region." "The McGuinty government is re-building Ontario's public infrastructure and this project is an essential part of our plan to modernize hospitals, reduce wait times and upgrade medical equipment in the Sault region and throughout the province," said Minister Caplan.

"Our infrastructure investments are helping us build a stronger, healthier and more prosperous province." "This project will ensure people in the Sault region get the modern, effective health care they need and deserve," said Minister of Health and Long-Term Care George Smitherman. The Ministry of Public Infrastructure Renewal has approved the Sault Area Hospital as an alternative financing and procurement project.

This means the construction work will be financed and carried out by the private sector, which will assume the financial risks if the project is not finished on time and on budget.

Once the hospital is built, it will be publicly owned, controlled and accountable. Under the Province's ReNew Ontario investment infrastructure plan, at least $5 billion will be invested over the next five years to improve health care facilities. "Our government recognizes the need to provide high-quality health care services across Ontario," said Premier McGuinty. "By improving access to more care, we're building a stronger health care system - and a quality of life that is truly second to none." *****************