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UCP to use private-public partnership for portion of Red Deer hospital expansion

‘Danielle Smith knows that P3s result in horrible outcomes’: NDP
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Alberta Infrastructure says the ambulatory care building, that is part of the $1.8-billion expansion of Red Deer Regional Hospital Centre, will be constructed through a public-private partnership. (File photo by Advocate staff)

Alberta’s NDP are calling the UCP’s plan to use a public-private partnership to build part of Red Deer hospital’s expansion a disaster.

But Alberta Infrastructure says P3s are a “proven commodity” and the wheels are in motion. The ambulatory care portion of the hospital project showed value for money and was approved to move forward as a P3 in late 2023.

“We anticipate having a contract in place with the successful proponent by May 2025,” said Alberta Infrastructure in a statement.

As part of an announcement on Wednesday about a March 14 public information session on the $1.8-billion redevelopment of the hospital, Alberta Infrastructure mentioned that it will use the P3 delivery model for the ambulatory care building.

That building, to house outpatient programs and services, is one of two projects that are included in the expansion. The other is a new in-patient tower, along with expansion and renovation of the existing hospital’s main building.

“Only three months ago the UCP said they would no longer be using the P3 approach as their preferred way to build schools, so there is no reason they need to transfer this disaster of an idea to our health care,” said Dr. Luanne Metz, Alberta NDP Critic for Health.

“Danielle Smith knows that P3s result in horrible outcomes for the function of infrastructure. There is no reason the Alberta government needs to be investing taxpayer dollars into privately controlled buildings for critical services.”

Related:

Public information session for Red Deer hospital expansion set for March 14

Metz said the Central Albertans won’t appreciate that the health care system won’t own the building and “be at the whim, the control of the private partner.” Students in an Edmonton P3 school had to wear their coats when the private partner wouldn’t turn up the heat because it would cost more.

“This is an example of what can happen with P3s when you don’t control the infrastructure yourself.”

She said Red Deer’s outpatient care facility will also need to work together with the main tower of the hospital, and losing control of the building’s function will result in problems for Central Albertans seeking care at this facility.

“The Alberta NDP would never use P3 models for the critical infrastructure Albertans rely on,” Metz said.

Related:

Construction and staffing for Red Deer hospital expansion in doubt, says NDP

Alberta Infrastructure said P3s are used across Canada and around the world to successfully deliver projects because they can increase efficiency, encourage innovation, and improve quality for the right projects.

“Alberta taxpayers deserve to get the best value for their investment dollars, and ignoring this tool would be a mistake.

“The Red Deer Regional Hospital Centre project will integrate the existing, renovated and new components into a facility that supports the healthcare needs of Red Deer and the region. Regardless of the delivery method for the project phases, there will be one public operator (AHS) responsible for providing the healthcare that the people of Red Deer can rely on.”



szielinski@reddeeradvocate.com

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Susan Zielinski

About the Author: Susan Zielinski

Susan has been with the Red Deer Advocate since 2001. Her reporting has focused on education, social and health issues.
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