A new study by economist Hugh Mackenzie suggests Brampton’s new hospital would cost Ontario $175 million less if it were built with public financing. See: the Ontario Health Coalition web site.
In the paper, Mackenzie argues that government could build the hospital cheaper because it can borrow money at rates substantially lower than the Brampton hospital’s private sector partners.
Over the 27 year course of the deal, the higher interest rate will make the project $344 million more expensive than public financing, a cost the health coalition expects will be passed on to taxpayers in the form of reduced services and more user fees.