A legal action launched by the Ontario Health Coalition, CUPE and other public sector unions has put the construction of Bramptons P3 hospital on hold.
Now, the consortium that won the bid to finance, build and operate the hospital is demanding compensation for the delay. The Healthcare Infrastructure Company of Canada is pressing the board of the William Osler Centre for an extra $22 million to cover its costs.
Ontario health minister George Smitherman signed off on the project in November after breaking an election promise that the new hospital would not be privatized. Concerned the delay could further increase costs, Bramptons mayor Susan Fennell pressed Smitherman to start construction while the case is in the courts. A decision on the litigation is not expected until the fall.
The hospital will be privately financed and operated for profit. The services are bundled into the lease and paid for through a complex lending agreement over at least 25 years.