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Photo by MAHC

District council passes resolution making funding for hospital redevelopments conditional on approval of final plan

The District of Muskoka will not release its $77.4 million contribution toward the local share (estimated at $225 million) of the cost to redevelop the Bracebridge and Huntsville hospitals unless it approves the final plan.

At its July 15 meeting, the District of Muskoka Council passed a resolution making its commitment to the local share of the cost for the future redevelopment of area hospitals conditional on its approval of Muskoka Algonquin Healthcare’s final redevelopment proposal before it is submitted to the Province.

The motion was slightly amended and originally proposed by Councillors Peter Kelley and Guy Burry, who said they were looking for ‘guardrails’ to ensure value for the money. Kelley said the motion was about the process rather than the model. “This is not about [the]product of MAHC’s work. We’re not talking about how many beds and where the beds are and what the specialties are. We’re talking about process… it’s like an audit. Auditors don’t go in and say this was a great deal; they say, ‘You followed the rules. You consulted the right people. You put the tenders and bids out. Your process was transparent and available…’”

The resolution anticipates that the final vote will take place at District Council’s October 21, 2024 meeting, “or as soon as practicable,” in anticipation of hospital administrator Muskoka Algonquin Healthcare (MAHC) submitting its plan to the Province in November.

Different interpretations were given to the motion. Some noted that council doesn’t have the tools to be the final arbiter of the model and preferred to leave it to the professionals. Others saw it simply as ensuring value for money rather than just writing a blank cheque. At the same time, some called the motion divisive.

The resolution also puts District Chair Jeff Lehman in the hot seat by noting that he would “work with stakeholders to continue to advocate for the District.” In other words, to ensure that the final proposal gets approved at the District table lest this council, as Councillor Scott Morrison put it, go down in history as the council that could not come together to improve healthcare for its community with a $1 billion commitment from the Province. Morrison said the alternative is getting stuck with hospitals that physicians are saying are falling apart at the seam. “Not only do we not understand what it costs to build these facilities, we don’t understand what it costs to staff these facilities, and we don’t understand the pressures on MAHC to operate those facilities every single year…” argued Morrison.

“My effort is to ensure that folks have the opportunity to work through the challenges that they perceive and come to solutions that we can move forward with,” said Councillor Rick Maloney.

Maloney also cautioned that the decision was too important to rush through. “I would expect that if parties involved feel that the October 21st council meeting is not a reasonable finish line or submission line, that they’re coming back and saying ‘we need more time,’ because I don’t want to see it as an excuse.”

Lehman said he would report back to council if things seemed to be slipping.

Both Councillors Nancy Alcock and Tatiana Sutherland spoke of creating some parameters or a structured way to consider the proposal when it goes before District for approval in October. Lehman said there would be a presentation of information pertaining to the model before the council votes on it, and in the interim, he urged councillors to ask questions and be part of the process for the next three months. “So by setting the timeline, which I think was a wise suggestion, there is now a runway for both resolving, to some extent, outstanding issues to the extent we can do that. I think Councillor Koetsier is bang-on right. You’re never going to make everyone happy, but also [we need]to fully understand the model that is presented and brought forward.”

Councillor Dan Armour asked to be kept abreast of the process so as not to be blindsided on decision day. Lehman said he would do that.

Councillor Heidi Lorenz pointed to the elephant in the room: “What if it doesn’t pass? Is the whole thing done? Is that what happens in October if we can’t support the model as presented? Is that a possibility? Like, without our local share, can they submit the project?”

“I actually don’t know the answer to that. Could they keep moving? I don’t know,” said Lehman.

Morrison said he was told MAHC could not move forward without District support. He also said time is an issue. “We can’t predict what the political climate will be two months from now, let alone six months from now. So we can’t hang our hat on the fact that this money is going to be here forever… so let’s really set the expectation that when it comes back to this table, we’re not being unreasonable… there’s a lot of work that’s gone into this. To blow it up over a few little things on service or beds would be a big mistake, so let’s make sure the expectation is fair.” Morrison said he did not think it reasonable to expect a model that’s going to make everyone happy. “In my opinion, if we have a model that has north, south, east, and west a little bit upset, that’s the model. That’s the model we want because everybody will feel like they’re sacrificing.”

Maloney agreed. “A solution that feels a little bit of pain by everybody is a great solution. I totally agree with that. I would suggest and submit to you that that’s not the feeling that folks are feeling today when it comes to the model. So if that’s the goal that we’re working for in terms of a little bit of pain for everybody, I’m all for that.”

Councillor Brian Bochek said a lot of councillors rely on information from other councillors “and there’s a bit of bias there, and as I seek information here from different members of council with different ideas about how we should move forward, I felt I would get an unbias opinion from somebody who has the entire district of Muskoka as their concern and that’s why I support the final resolution knowing that I will be reported back to by our chair with an unbias position that I can take whole, and I can base my decision on how we move forward from there.”

In the end, a majority of District council voted in favour of the amended resolution. Note: Alcock was chosen as a seconder of the motion but voted against it. See the amended resolution passed below:

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