In response to the Province of BC’s announcement approving a $1.579 billion patient care tower at the University Hospital of Northern BC (UHNBC), the Fraser-Fort George Regional Hospital District board of directors continues with its funding decision-making process, the last step to see the project move forward. The Fraser-Fort George Regional Hospital District board of directors will vote on a capital expenditure bylaw to authorize $318.7 million in RHD funding for the patient care tower to advance healthcare infrastructure in the region.
Regional hospital districts play a crucial role in financing capital improvements for healthcare facilities within their service areas. Their primary function is to raise revenue to support various capital investment needs, including equipment, renovations and new construction. Revenue comes from local property taxes and regional hospital districts can also borrow funds for capital investments without requiring elector approval, as outlined in the Hospital District Act.
Typically, regional hospital districts contribute up to 40 per cent of the total capital expenditure for projects that benefit residents within their boundaries. The Fraser-Fort George Regional Hospital District’s proposed global contribution of $365 million, which accounts for approximately 21.63 per cent of the total project cost, was determined through extensive negotiations between the Province of BC and the Fraser-Fort George Regional Hospital District.
The $365 million global contribution is reflective of three parts:
- $5,000,000 for the business plan
- $41,288,000 for the early works agreement
- $318,712,000 for the patient care tower contribution.
Approval of capital expenditure bylaws for the business plan and early works agreement have already occurred in 2021 and 2023 respectively.
The Fraser-Fort George Regional Hospital District has been preparing for this hospital expansion, and other infrastructure projects, by accumulating funds over the past 10 years. Long-term financial plans were prepared in 2017, 2019, 2021 and 2024 and the plans are available to the public on the Regional District’s website.
At the Fraser-Fort George Regional Hospital District Board Meeting on September 12, and in accordance with the legislated decision-making procedures, the Board of Directors will hear the first, second and third readings and potentially adopt the capital expenditure bylaw.
The Fraser-Fort George Regional Hospital District’s contribution was negotiated to be below the standard 40% share of capital costs. The contribution to the patient care tower construction is capped at $318.7 million, therefore it is anticipated that by the time construction begins, the Fraser-Fort George Regional Hospital District’s percentage contribution may be further reduced if total project costs escalate.
The new 11-storey patient care tower will include:
- a new six-bed cardiac care unit and a 20-bed cardiac step-down unit
- an expanded surgical unit with 47 new beds and 12 operating rooms
- increased capacity for mental health and substance use services
Construction is expected to commence in fall 2026, with completion projected for 2031. This project marks a significant milestone in enhancing healthcare services for the residents of the Regional District of Fraser-Fort George and the surrounding areas.