As N.S officials discuss $4.5B hospital expansion, CEO says a new one likely needed, too

Nova Scotia Health's interim CEO says Halifax will need a new hospital in the coming years.

Officials in charge of the $7.4-billion QEII Halifax Infirmary expansion and maintenance project appeared before a legislative committee on Wednesday, offering some details – but not others – about where the project stands and where it’s heading.

During those discussions though, Karen Oldfield, the interim president and CEO of Nova Scotia Health, said a new hospital may also be required in the coming years.

“I don’t want to presuppose an outcome, but I would be shocked if there was not some indication of another major or regional hospital being required in the Central Zone over the course of the planning horizon,” Oldfield said.

“I’m not announcing that, I’m not saying that,” she said. ”I’m intuiting that.”

The population growth, particularly in the HRM, “makes it very necessary to figure out just how we’re going to build out the Central Zone,” she continued.

But building is only part of the battle. She acknowledged staffing, timing and budgeting are only some components that need to be considered as part of the health authority’s master plan.

While speaking to reporters, Oldfield said several population factors will put even more pressure on the system.

“We’re almost in a race against time to prepare for that peak to have the healthcare facilities ready, to have long-term care facilities ready.

“It’s the demographics, it’s the age, but it’s also the baby boom that’s hitting – I think it peaks out at 2035 – where a significant percentage of Nova Scotians are over age 65, and then it comes back down again,” Oldfield said.

Acknowledging that a larger percentage of an aging population will likely lead to higher healthcare needs and long-term care needs.

Oldfield said when she was appointed to her role by Premier Tim Houston in 2021, Nova Scotia Health did not have a 10-year capital plan, which makes it “very difficult to plan when you don’t have a long-term plan.”

Construction update

Oldfield said the QEII Halifax Infirmary expansion project’s design phase is nearly 75 per cent completed, “and that work is being shaped by those who use the spaces every day.”

The first two cranes arrived last month and two more will arrive later this summer as part of the largest infrastructure project in the province’s history.

Construction crews started pouring the foundation last month and the concrete structure will rise to the main floor in December, “marking a significant milestone,” said David Benoit, the CEO of Build Nova Scotia.

Benoit reiterated numerous times to the Standing Committee on Public Accounts that the $7.4-billion price tag – including $4.5-billion in construction costs and $2.9-billion for 30-year maintenance costs – is part of a “firm fixed price and schedule.”

“If things arise, like tariffs or hurricanes, or unexpected, unforeseeable things, there are clauses in the contract which allow for a conversation to happen,” he said.

“I’m comfortable that we got value for money, but you don’t have to take my word for it,” Benoit told the committee.

He told reporters a long-awaited ‘value for money’ document will be released to the public, likely within “days.”

When asked how tariffs could impact costs, John Volcko, PCL Constructors vice president of corporate development, said they learned a lot about price volatility and escalation during the COVID-19 pandemic.

“Within our bid, we’ve got certain allowances, certain contingencies to deal with unexpected things like that,” he told reporters.

Interim Liberal leader Derek Mombourquette asked that the contract between the province and Plenary PCL Health (PPH) be tabled at the committee.

The expansion will see a new, modern, 14-floor acute care tower with 216 beds, 16 operating rooms, a 48-bed intensive care unit and an emergency department that is nearly twice the size of the current one. It is expected to open in 2031.

It’s still not clear how many new staff will be needed and how many will come over from the Victoria General (VG) Hospital.

Hotel rooms required

At the construction peak for the QEII Halifax Infirmary project, there will be 850 to 1,000 workers, Volcko said.

About two-thirds of those will be from Nova Scotia and the rest will come from out-of-province “where there’s just not sufficient skilled labour.”

In response to a question from the NDP and Liberals, Benoit said there are ongoing discussions with Nova Scotia Community College about the void.

For those workers coming from away, Volcko said “there just was not sufficient time to put up a temporary lodging.”

He said all 238 rooms at the Atlantica Hotel will be taken up by workers at some point.

“It’s expected eventually we’ll take over all the rooms and then there will be a tail where we don’t need all the rooms again,” he told reporters.

He couldn’t say how many more rooms may be needed because he’s not sure how many workers will be from out of town.

“Our first objective is to employ local talent, local skilled labour,” Volcko said. “If our peak is in three years, you know, we’ve got some time to build a workforce.”

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