B.C. Hospital Expansion Costs Surge Past $100 Million Mark

The cost of expanding the East Kootenay Regional Hospital (EKRH) has exceeded $100 million, primarily due to the addition of a third floor, which was not part of the original plan. Initially budgeted at $59 million for a two-floor expansion, the project has seen significant budget escalations, with the hospital board advocating for the third floor after the project announcement in January 2025.

Infrastructure Minister Bowinn Ma stated that while the province agreed to the concept of the additional floor, it would not provide further funding. “We were very clear with our partners that this request significantly altered the scope of the project, would increase the cost substantially, and delay the completion date for the project,” Ma explained. Despite this, the Kootenay East Regional Hospital District (KERHD) is fully funding the third floor, which adds approximately $28 million to the total cost.

The total cost of the project now stands at $104.7 million. This figure includes a recent budget increase of $17 million reported by Interior Health for the original two-story design. The hospital board was requested to contribute $7.13 million towards this increase.

A key factor in the decision to pursue the third floor was a $15 million contribution from Elk Valley Resources (EVR) toward cancer care at EKRH. This funding was a commitment made by Teck prior to its sale to Glencore in 2024, and was crucial in alleviating pressure on the hospital’s existing facilities.

Last summer, the hospital board approved the funding for the third floor, even though the province had already finalized the plans for the original two-story project. Chair of the hospital board, David Wilks, cautioned that the third floor proposal could be compromised if the board did not commit to covering the entire cost. Concerns were raised about the potential loss of the EVR contribution, although this was denied by an executive from Interior Health.

A recent meeting in February highlighted tensions when Interior Health requested an additional $7.13 million. Some board directors expressed reservations about contributing further funds, voicing worries that failure to approve the request could lead to project delays or even cancellation. Originally, construction was scheduled to commence in May, but directors noted that the timeline could extend by up to two years due to the ongoing budget discussions.

The Kootenay East Regional Hospital District encompasses the East Kootenay region, including communities such as Creston and Golden, and is funded through property taxation. Typically, capital health care projects are financed with a cost-sharing model of 60 percent from the province and 40 percent from regional hospital districts. However, in this instance, the funding dynamics have shifted due to the full funding of the third floor by the hospital board.

Moving forward, Minister Ma reaffirmed the province’s commitment to the EKRH expansion despite the financial challenges. “We are committed to delivering this project for people in the Kootenays as quickly as possible and in a fiscally responsible way,” Ma stated. The collaboration with partners, including Interior Health and the Kootenay East Regional Hospital District, will be crucial in navigating the complexities of this expanded project.