New Public Peterborough Hospital Opening Sunday: OHC Report Shows Costs Dramatically Lower than P3 Hospitals

    PETERBOROUGH, ON, June 6 /CNW Telbec/ - As the patients move into the
brand new public Peterborough Hospital on Sunday June 8th a new Ontario Health
Coalition report shows that it was completed at a fraction of the cost of the
Private-Public Partnership (P3) Brampton William Osler Hospital and the P3
North Bay General Hospital. The report, "Cost Comparison Analysis of P3
Projects Versus Public Hospital" raises serious questions about the
extraordinary cost of the privatized P3 hospitals and can be found at the OHC
website at
    The Peterborough hospital was the last public project to be approved
before the P3 program was introduced. The Brampton hospital was the first P3
hospital to be completed. Both were started under the Conservative government
and completed under the McGuinty Liberal government. The North Bay hospital is
the first P3 completed entirely under the McGuinty government; its high costs
clearly demonstrating that the Brampton cost over-runs were no aberration.
    The cost comparison shows that the P3 hospitals are extraordinarily more
expensive than the public Peterborough hospital project. The main findings of
the report are:

    - The price per bed (construction costs/number of final beds) for
      Peterborough's public hospital is between $ .05 million and more than
      $ 2 million less per bed than the P3 hospitals commissioned at the same
      time and completed in a similar time frame.
    - The public Peterborough hospital has 80% as many beds as the Brampton
      P3 hospital but cost only 30% of the costs of the P3 hospital, in
      construction costs alone. If we include the service and interest costs
      the difference becomes even greater.
    - The public Peterborough hospital has significantly more beds than the
      P3 North Bay hospital but was significantly cheaper: Peterborough
      Hospital has 127% of the bed capacity of the North Bay P3 Hospital but
      was only 35.8% of the costs.

                     William Osler            North Bay         Peterborough
                            Health              General             Hospital
                        Centre (P3)        Hospital (P3)             (Public)
                       November 30,    January 19, 2007
    Timeline                2001 -             (winning      June 20, 2000 -
                      October 2007         bidder named)        June 8, 2008
    Construction      $650 million         $551 million         $197 million
     costs                             (unclear if this
                                          cost includes
    Total Costs      Approximately        $1.05 billion         $286 million
     w/equipment +    $900 million            (includes           (including
     plus                including         interest and            equipment,
     privatization       equipment;            services,         there is no
     of services        $3+Billion      unclear if this              service
     (including       with service        cost includes        privatization
     interest)       contracts and            equipment)       deal included
                          interest                           since this is a
                                                             public hospital
                                                                    not a P3)
    Beds upon                  479                  n/a                  400
    Total beds                 608                  388                  494
    Cost per
     total bed       $1,069,078.95        $1,430,412.17          $398,785.43
    Total costs
     per bed         $1,480,263.16        $2,706,185.57          $558,704.45
     w/equipment,            (from
     interest and     $900 million
     privatization          figure)
     of services

    "The government's own figures reveal such a significant cost difference
between the public and the privatized hospitals that it cannot be ignored. How
could the government continue to pursue a privatized P3 hospital policy that
is costing half-a-million to two million dollars more per bed?" said Natalie
Mehra, Director of the Ontario Health Coalition."The people of Peterborough
should be extremely pleased that they are not saddled with the tax increases
and losses of services that the towns with privatized P3 hospitals are forced
to endure. With this report we are reiterating our demand for a moratorium on
the privatized P3 hospitals pending a full, independent and transparent audit
of all of the deals to date."
    Roy Brady, of the Peterborough Health Coalition said "Using the
government's own numbers we have found that the Peterborough public hospital -
commissioned and built in the same time frame as two P3 hospitals - but was a
fraction of the cost of the privatized hospital projects. The government
should use the public Peterborough hospital model across the province and stop
the privatization of hospital development projects."

For further information:

For further information: Roy Brady (avail Fri evening until Sunday only
at this number) (819) 827-0086; Natalie Mehra, Director OHC, (416) 441-2502

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