‘Now the hard work actually begins:’ Nanaimo advocates cautiously optimistic on new NRGH tower pledge

“Now the hard work actually begins. Fair Care is not going to be backing away from this conversation. We will continue to work with community to get a commitment on timeframes.”

Hais and the alliance have spearheaded a high-profile public education campaign to shine light on a disparity in healthcare resources for some on Vancouver Island.

Despite having just over half the total population, only around one-fifth of provincial dollars are spent on facilities and specialists north of the Malahat.

Hospitals in Victoria feature far more beds, specialists and treatment options than elsewhere on Island, especially at Nanaimo Regional General Hospital.

Hais, while calling it “a good day”, is approaching the campaign promise with caution, noting it was not a formal funding announcement from a sitting government.

The current patient tower at NRGH is often considerably over crowded, with upwards of 400 patients inside a facility with a capacity of 340. (Ian Holmes/NanaimoNewsNOW)

“We would like to know specifics, we want to know dates. We need to know what the scope of the project is, how are we addressing the gross deficit we face in the community with respect to cardiac care. Does the tower include a cath lab? Or is there a quicker plan to get us something temporary…until the tower can come?”

She credited better public education as a major contributing factor behind pushing a new patient tower at NRGH to the top of the BC NDP’s priorities.

“I think for the first time historically ever, our community of central and north Island speaking out together is creating impacts. I think we are being heard and this is the first time since I’ve been able to vote that I’ve seen our entire community stand up with one voice.”

When asked about similar conversations with BC Conservative leader John Rustad and BC Green leader Sonia Furstenau, Hais said high-level conversations have occurred, however there’s been nothing but rumblings about a similar commitment from either party.

What will it cost, and how to pay for it?
Capital healthcare projects in the Nanaimo region are typically cost-shared between the province and the Nanaimo Regional Hospital District (NRHD).

In most cases, the province foots 60 per cent of the bill and local taxpayers make up the balance, through the NRHD.

District board chair Ian Thorpe said the commitment from Eby was “another significant step forward” in addressing the healthcare gulf on the central Island.

He added it was somewhat of an about-face from the NDP given conversations over the last two years.

“A year ago when I met with [health minister Adrian] Dix, he as much as told me that the patient tower was not even on the far distant horizon. This year when we met with him he acknowledged we were climbing up the scale and it would be a priority at some point, and now we have the announcement from [David] Eby.”

Expansion of NRGH has long been a request from people across the central and north Island area, given a huge increase in population and lack of available healthcare options. (File Photo/NanaimoNewsNOW)

Cost estimates for the new facility vary wildly, however there is consensus on an approximate 10 year development and construction timeline.

An Island Health draft capital plan from January 2024 estimates the patient tower replacement to cost $1.15 billion, while Fair Care Alliance has the project closer to $1.7 billion.

Even on the low end of estimates, it means based on a 40 per cent cost share, the NRHD could be responsible for between $460-680 million.

It’s a range which Thorpe is hopeful will drop.

“If and when the tower gets definitely announced and a business plan is announced, then I can foresee us having serious conversations with the government about the funding formula and hopefully be able to negotiate some sort of reasonable compromise with how much money we need to put into it.”

The 40 per cent figure is based off the 1967 Hospital District Act, a piece of legislation which has been heavily criticized by local government over recent years for creating an unfair burden on municipalities and taxpayers.

In response to the pending tax commitment, Thorpe said the NRHD has “aggressively” raised its tax levies in recent years.

According to the District’s annual budget for 2024-2028, approximately $48 million sat in reserve for capital projects at the end of the 2023 tax year.

Money is added every year, however other capital projects also deplete the funds, namely pending development of a long-term care facility in Lantzville.

Budget projections have the reserve being maintained at around $65 million until 2028, when a large contribution and presently reduced expenditures would see the account jump to $142 million.

“I have not had anybody come to me and complain they think [recent tax increases for healthcare] is unfair and unreasonable,” Thorpe said. “That said, there is a limit to taxpayer resources and I think we might need to look as we move forward at maybe pulling back how aggressive we’ve been a little bit, I think we’ve made our point to the government.”

Thorpe said even with a continued aggressive taxation approach, significant borrowing would need to occur to finance their share of the project.

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by Alex Rawnsley

‘Now the hard work actually begins:’ Nanaimo advocates cautiously optimistic on new NRGH tower pledge

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