Prince Albert Victoria Hospital redevelopment funding dispute reignites political debate

Prince Albert’s Victoria Hospital redevelopment is back in the spotlight after the city revealed it’s being asked to contribute tens of millions of dollars.

Prince Albert’s delayed Victoria Hospital redevelopment is back in the spotlight after the city revealed it has been asked to contribute tens of millions of dollars toward the project, sparking accusations from the Saskatchewan NDP that the province has broken its promise to fully fund the build.

The issue surfaced publicly during Tuesday’s State of the City address, when Mayor Bill Powalinsky disclosed that the Saskatchewan Health Authority had requested a significant financial contribution from the city.

“The Saskatchewan Health Authority is asking the City of Prince Albert for $30 million,” the mayor told community and business leaders in attendance.

Powalinsky says the request was made via a letter in November, as part of discussions around the long-overdue hospital redevelopment. The revelation quickly became a political hot point, with the Saskatchewan NDP accusing the provincial government of backing away from earlier commitments.

Powalinsky says his intent was not to alarm residents, but to be transparent about the city’s financial realities.

“My honest and sincere intent was to convey to the public that we’re a growing city, that we’re progressive, and that we really need to figure out how we’re going to manage through the financial challenges. It wasn’t to create fear or panic,” he told CTV News on Wednesday.

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NDP Leader Carla Beck says the request directly contradicts statements made in the legislature last November, when Premier Scott Moe and Health Minister Jeremy Cockrill said the Victoria Hospital project would be exempt from any community share.

“It was a surprise to us, but I think even more so a surprise to the people of Prince Albert and city council to find that they’re going to be hit with a $30 million bill for that project,” she said.

The province disputes that characterization.

“As is the case with all health facility projects, the local community (typically a combination of municipalities in the facility’s catchment area and local health foundations) will be responsible for the cost of furniture, fixtures and equipment for the renewed and expanded PAVH,” the Government of Saskatchewan said in an emailed statement.

“This funding arrangement was clearly outlined when the when the PAVH renewal and expansion project was announced on March 6, 2020.”

Powalinsky, who has been mayor for just over 15 months, says he was not aware of the specific items the city would be expected to fund and only learned of the $30 million figure last fall. He adds city council is also seeking clarity on potential contributions from surrounding municipalities and northern communities that rely on the hospital.

“All of these questions—we’re not backing away from a commitment. We’re just asking for more information so we can arrive at a good decision.”

The province also said it will pay 100 per cent of the capital cost of the project and that the local community and Victoria Hospital Foundation will raise funds for furniture and equipment.

According to Powalinsky, the city currently has about $6 million available to put toward the project. Negotiations with the province and the Saskatchewan Health Authority are ongoing, leaving the final cost to Prince Albert taxpayers still uncertain.