Construction of two new Muskoka hospitals to cost significantly more than estimated

Construction of two new hospitals in Huntsville and Bracebridge is expected to cost significantly more than initially estimated due to supply chain issues and high inflation rates related to the COVID-19 pandemic.

The original cost estimate for the two facilities was roughly $560 million, but now that is closer to $722 million and could rise to as much as $967 million in 10 years' time.

"The Ministry of Health pays for most of the cost of new buildings, and the local communities have to pay a share of the entire project," explained Moreen Miller, chair of the Muskoka Algonquin Healthcare's Board of Directors.

Miller noted the communities' share could be up to 30 per cent of the total project cost. Initially estimated at $129 million, it could increase to as much as $225 million.

For the hospitals to proceed to tender, the government must be shown how the community will pay for its share of the projects.

Despite the challenges, the hospitals' foundations are well underway with fundraising efforts.

The hospitals plan to hold open houses in the New Year to gather input from the public on the design and operation of the new facilities.