Kootenay East Regional Hospital District (KERHD) board of directors July 11 begrudgingly approved a surprise capital funding increase request for the Green Home Long Term-Care Beds Project in Cranbrook from Interior Health.

The board also approved spending or borrowing $15 million to help add a third floor to the East Kootenay Regional Hospital (EKRH) Oncology/Renal Project.

The moves followed a leap in costs to the Green Home project, which ballooned $76 million to $232,076,000. As the KERHD funds 40% of capital projects, Interior Health came to the board for an additional $30,233,000.

KERHD Chair David Wilks called the special meeting of the board Friday after the request from Interior Health for the additional funds.

After more than two hours of discussion and a presentation by Lorne Sisley, Interior Health’s Executive Director, Corporate Services, as well as input from Interior Health executives Todd Mastel, Matt Wilkie, Lindsay Hetu, Richard Harding and interim president and CEO Sylvia Weir (online), the board approved additional funding of $30,233,000 for the Cranbrook Long-Term Care Beds Project with funding from reserves or short-term borrowing and funding of up to $15,000,000 for the cost of adding a third floor on the Oncology/Renal Project at EKRH, with funding from reserves or borrowing.

“This is the single largest capital venture we’ve gone on, period. We’re looking at a potential $92 million plus. At 40% we had very little consultation,” stated Chair Wilks. “You can see the frustration this board has.”

City of Cranbrook Mayor Wayne Price and Electoral Area B Director Stan Doehle voted against both decisions.

Doehle questioned why the B.C. government’s figures for building long-term care home rooms grew from $1.1 million to $1.55 million (per room), while the private sector was capable of producing rooms at a recently built Cranbrook home at the rate of $229,000 a room.

“Are there different standards for these buildings? I can’t get my head around this,” he said.

Mayor Price said the KERHD should have been “at the table” with IH at the outset, seeing as how the region, with limited taxpayers, is on the hook for so much more money for the facility improvement. “Half the people I associate with are going to lose their minds. How can you justify that? We don’t have it (the money),” he said, adding, it will impact “other meaningful projects.”

Chair Wilks quoted a recent email from Infrastructure Minister Bowinn Ma who confirmed that the Green Home project proceeding as planned is dependent on the KERHD contributing the full 40% funding share. If funding is not approved at the July board meeting, the project will be delayed and re-evaluated as to how or if to move forward.

“You can see the tone of the letter. Our backs are against the wall,” Wilks told the board.

Concerns were many among board members.

District of Elkford Mayor Director Steve Fairbairn said he was appreciated better explanation from IH of “these cost pressures. I can’t help but think I am being bamboozled. Why have we not been given actual detailed explanations?”

City of Kimberley Mayor Don McCormick said greater KERHD board inclusion should have occurred from IH’s project board. “All major stakeholders” should have been included, he said. “It’s not good governance. We need more than that. Something seems broken.”

Village of Radium Hot Springs Mayor Mike Gray said the process is “kind of a hostage situation.”

Several directors expressed disappointment but conceded they had to forge ahead, as costs for long-term care facilities would not decrease if delays occurred.

McCormick noted 25 to 30% of the 90 beds in EKRH are occupied by long-term care patients in need of accommodation.

Electoral Area C Director Rob Gay said, “Our residents need this, and the staff. I have very little trust in this organization (IH)” but because it is needed, “let’s get on with it.”

Regional District of Central Kootenay Electoral Area A Director Garry Jackman warned delays could kill the long-term care project.

“It’s needed. We are gridlocked now. I really dislike the situation but…”

Fairbairn admitted, “The lowest cost to do this facility is to do it now.”

As for the EKRH third floor funding request, Chair Wilks said the recent email from Minister Ma outlines a potential “Win-win. This opportunity we see before us does not come to us too often. This is our one shot at getting a third floor.”

KERHD chief financial officer Holly Ronnquist noted in a report to the board: “While she (Ma) also stated that there are not additional funds available to support a third floor on the recently approved Oncology/Renal Project, Minister Ma did commit to supporting the third floor project going through the business case process and into the capital plan if the KERHD were to commit to funding 100% of the costs related to the additional floor. The cost of the additional floor is estimated at $30 million. With the $15 million donation from Elk Valley Resources being allocated to the third floor, that would leave $15 million to be funded by the Hospital District.”

IH interim president and CEO Sylvia Weir explained the cost increase in a June 4 letter to the KERHD: “Since the initial business plan was prepared in 2023, there has been significant inflationary pressure, and building codes and standards were updated in 2024. In addition, through the development of the design with input from the construction manager, more detailed information about the site conditions, building requirements, and other costs were revealed which increased the estimated construction costs.”

The Green Home Long Term-Care Beds Project, when completed, will feature 150 beds in a 16,600 square foot facility.

e-KNOW file photos

Article Share