surrounding the Deep River and District Hospital’s (DRDH) Long-Term Care
Development Project is building, as the DRDH Project Team continues to make
progress towards bringing the new home to life.
Long-Term Care Development Project will break ground in the summer of 2023, and
will see a new 70,000 square foot, 2-story, 96-bed Long-Term Care Home built on
the existing DRDH health campus property.
on the new home is one step closer to beginning, thanks to the recent announcement
of a time-limited construction funding subsidy for eligible projects by the
Ministry of Long-Term Care.
Ministry of Long-Term Care highlighted cost escalations in construction markets
and increasing interest rates as having an impact on the viability of projects
across the province. In response, this new funding will allow eligible projects
to offset part of their projected cost escalations and deliver on much needed
long-term care capacity in a timely manner.
Ministry of Long-Term Care will provide additional funds through a time-limited
subsidy increase to new and upgraded long-term care projects across the
province who begin construction by August 31, 2023. This additional
construction subsidy will see eligible projects receive an increase of up to
$35 per bed, per day, for 25 years.
DRDH’s project plan was developed in 2018, significant cost escalations have
occurred across the construction market. Given these escalations, recent cost
estimates have come in nearly 33% over the initially developed budget for project
new funding from the Ministry of Long-Term Care is welcomed news for our project
here at DRDH,” stated William Willard, Chief Financial Officer and
Vice-President of Operations, who is leading the project for DRDH. “The
economic conditions today are much different than they were when project
planning started, which is evident by the large increases in construction costs
and borrowing rates. The new funding from the Ministry of Long-Term Care
acknowledges these increases and allows our project to continue toward breaking
ground before August 31, 2023 on this important and much needed home for our
am very pleased that our government recognized the escalation of construction
costs could put many of our long-term care projects in jeopardy. By providing
additional construction subsidies, the Deep River and District Hospital can now
proceed with confidence, in the knowledge that our Ministry of Long-Term Care
is providing the necessary funding to bridge the gap created by escalating
construction costs,” said MPP John Yakabuski. “It has been an excellent
experience to work with the Project Team at the Deep River and District
Hospital, and I look forward to continuing to work together as this project
rising costs of the project, the Closer to
Home campaign will not be increasing its fundraising target. Due to the
construction funding subsidy increase, the Closer
to Home goal of raising $2.5 million in support of the new home will remain
unchanged. Thanks to the generosity of members of our community, over 14% of
the $2.5 M goal has already been reached.
DRDH Project Team has informed the Ministry of Long-Term Care that the project will
meet the eligibility criteria outlined for the funding, including having construction
begin by August 31, 2023. Minor site preparation will begin as early as this
week, with official ground breaking in August 2023. Construction for the new
home is planned to take 2 years, with residents moving in as early as 2025.
more information on the project, including how to donate to the Closer to Home campaign and view design
renderings for the Long-Term Care Development Project, please visit drdh.org/ClosertoHomeCampaign.
DRDH Team Members from across the organization are pictured here, along with HDR Architects, during design meetings for the new Long-Term Care Home in late December.