Current costs exceed approved provincial funding
DUNNVILLE—A planned 64-bed expansion at Dunnville’s long-term care facility Edgewater Gardens (EG) has been paused due to a funding shortfall from the provincial government.
The expansion was first announced in March 2021 as part of the government’s plans to boost available LTC space across Ontario by investing in 80 projects touted to add 30,000 new LTC beds over a 10-year period. It dates back further to December 2019, when EG first applied to the Province for those additional spaces.
However, according to an EG press release sent out last week, “despite support from generous donors and community members, the level of provincial funding for the expansion is not adequate to support the cost of the project. As a result, Edgewater Gardens has made the difficult decision to pause indefinitely the long-term care expansion project.”
The release notes that the team at EG will continue to explore options with the government and remains “committed to finding a solution that will bring much needed long-term care beds to Dunnville.”
Haldimand Norfolk MPP Bobbi Ann Brady iterated in a written reply to The Press that this is a pause, not a cancellation of the planned expansion.
“I’ve had very open and honest conversations with (Haldimand War Memorial Hospital and EG) President and CEO Sharon Moore. The two of us agree and have committed to continuing to explore options with our contacts within government so these new much-needed LTC beds will be built in Dunnville,” said Brady.
Moore said that while the team at EG has been “actively working to design the additional beds,” the project was also briefly put on hold earlier this year until the Ministry of Long Term Care (MLTC) announced additional funding through a top up construction funding subsidy.
According to an MLTC press release from April, $155.5 million was made available to eligible LTC projects approved for construction by November 30 of this year. Those projects could receive an additional subsidy of $35 per bed per day for 25 years, with proponents able to convert up to $15 of that supplemental funding into a construction grant payable at the start of construction to “help increase the project’s up-front equity and make it easier to secure financing.”
Moore said the EG team was hopeful that the additional funding would help push the project over the line, but “as we work through our detailed designs and get updated cost estimates, we have learned we have a shortfall.”
With several years of work put into the project and a detailed design ready, the news of the pause comes just as the project was gearing up to break ground in early 2025. Haldimand Council approved the rezoning application to facilitate construction at a CIC meeting in June.
Brady noted that she has been advocating to the MLTC about the expansion since her election in 2022 and will continue to do so. She also noted that the pause is not an isolated situation: “I have heard of other regions across the province having to pause as well.”
She also said how inflation has impacted LTC projects in the three years since the government announced its expansion plans in 2021.
“The economic climate was much different than today,” said Brady. “We all know the cost to put a shovel in the ground in 2024 is dramatically higher than it was a few years ago. Other regions across the province who were also allocated new spaces have also run into the same funding issues.”
Government funding is not the only revenue source contributing to the expansion, with the Dunnville Hospital and Healthcare Foundation (DHHF) also actively working to raise funds and a number of donations made from the community.
Moore said that the pause comes at a time where demand for those beds is critically needed.
“We currently have about 40% of the inpatients at HWMH waiting for long-term care beds. We also know that Edgewater has approximately 200 people on the waitlist now,” she shared.
Despite the setback, Moore expressed pride at the work done by the staff at EG with the existing resources they have.
“We are very proud of the care we provide at Edgewater Gardens and we want to ensure we do everything we can to advocate for adequate funding so we can expand our capacity to care for the seniors and their families who need long term care in our community,” she said.
Brady echoed the sentiment, “The Ontario Government committed to adding 30,000 new long-term care beds in Ontario over the next 10 years and Edgewater is ready to help meet that goal and I (we) will continue to advocate with the government to get the beds built in our community. Haldimand War Memorial Hospital and Edgewater Gardens provide exemplary and high-quality care to the seniors in our community who need it and that will remain unchanged.”
The Press reached out to the MLTC, asking how many other LTC projects in Ontario are currently paused due to funding shortfalls and how the Ministry plans to proceed and fulfill their commitment to the expansion projects.
Their reply did not provide those particular details, instead offering the following statement.
“As part of our government’s commitment to build Ontario’s long-term care capacity, we have invested $6.4 billion into capital development to ensure Ontario has the long-term care capacity it needs. Furthermore, through Budget 2024, Ontario invested a further $155 million into the Construction Funding Subsidy to help projects get shovels into the ground faster. The Ministry of Long-Term Care continues to engage with Edgewater Gardens to assist them with the challenges that they have raised.”
