Ng: territorial hospital deal near signing stage

IQALUIT – Health Minister Kelvin Ng said last week that it won’t be long before he’ll be able to reveal details of a GNWT-Ottawa deal to pay for new hospitals in four NWT communities.

“There has been an agreement-in-principle reached and [it] is at the department of justice for their review of wording and the parameters around that agreement. Again, I am not at liberty to disclose the amount at this time until we can initial off on it, but we think it is adequate,” Ng told MLAs last week during their examination of the NWT health department’s budget.

It appears as if Ottawa will pay for three new Nunavut hospitals ­ in Iqaluit, Rankin Inlet and Cambridge Bay ­ through a re-apportionment of money originally committed to the renovation of Iqaluit’s old Baffin Regional Hospital.

In the 1988 health transfer agreement between Ottawa and Yellowknife, Ottawa committed more than $40 million to renovate the Baffin hospital and an additional $18 million for a new Inuvik hospital.

But under this new agreement, only about $25 million will go to the Baffin.

At least $7 or $8 million each will go towards new “cottage hospitals” in Rankin Inlet and Cambridge Bay.

It’s expected that under the funding deal, Ottawa would release hospital construction money to the territorial government over a multi-year period, rather in one lump-sum payment.

At the same time, private developers in each region would build their respective hospital buildings under long-term lease-back agreements. The GNWT’s recently unveiled “P-3” policy of public-private-partnerships would apply to those deals.

The GNWT and Nunavut’s three regional health boards have already consented to a deal endorsing this arrangement.

In the Baffin, the Qikiqtaaluk Corporation has already been selected as the developer that will build then lease the Baffin’s new hospital back to the Nunavut territorial government.

It’s not known, however, which private investors will supply QC with the up-front money they’ll need to get construction underway.

Ng said the new Baffin hospital will likely provide the same services that it provides now, with the exception perhaps of some new equipment that would be installed.

“Mr. Chairman, the only thing we can envision happening is the possibility of some additional upgraded facilities that would be able to accommodate and enhance some of the specialist services that might be coming in to service the region,” Ng said.

Ng also said that the territorial government isn’t planning to spend any extra in year-to-year operation and maintenance for the new Baffin hospital.

But he did say that the new building will use energy more efficiently and therefore produce savings that can be put back into medical services.

“The expectation is, those savings would be put back into some of the programs of course. For us, from a GNWT funding perspective, to be generally cost neutral,” Ng said.

“The Waldo Picco Hospital?”

Kivallivik MLA Kevin O’Brien, referring to Iqaluit MLA Ed Picco’s relentless questions about the hospital, had his own questions.

“Is it true that it is going to be named the Edward Waldo Picco Memorial Hospital?” O’Brien asked.

O’Brien has been asking Ng if the $7-$8 million likely to be spent on hospitals in the Keewatin and Kitikmeot could be increased without reducing the $25 million slated for the Baffin.

Ng also said there are a few issues that negotiators still need to work out before the Ottawa-GNWT deal will be done.

“They are going to be sitting down and once again trying to resolve any outstanding issues, so we will be able to sign off on this,” Ng said.

In response to a question from Picco, Ng said he would inform the Baffin caucus of MLAs when negotiators reach a final agreement.