Ontario Construction News staff writer
The Ontario government is launching a new funding model to build long-term care homes in the face of rising costs, especially in regions such as the Greater Toronto and Hamilton Area and northern Ontario hit by labour shortages and supply chain constraints.
A current fixed cost-per-bed model will shift to a flexible, percentage-based model to better address construction and land cost variations across Ontario, Long Term Care Minister Natalia Kusendova-Bashta said in a news release.
The new model will provide increased ministry funding equivalent to a maximum of 85 per cent of total eligible expenditures, with a maximum that’s determined by location across four market segments.
Not-for-profit operators will receive ministry funding earlier so that projects can advance to construction while eligible hospital and Indigenous operators can receive the entire amount of funding during their project’s construction period.
“As Ontario ages, we need to protect our province by building long-term care homes faster, smarter and in the places that need them most,” said Kusendova-Bashta.
The modified capital funding program will enable more redevelopment projects like Maxville Manor thanks to the increased certainty the new model provides, the government says.
The not-for-profit home in the eastern Ontario rural community of Maxville is upgrading its 122 existing beds and adding 38 beds by renovating the existing building and adding two buildings.
The phased project will bring modern amenities to support residents and staff and will include a new dining room, spa, multi-purpose room, an adult day program suite and upgraded outdoor areas. The redeveloped, 160-bed home is expected to welcome its first residents in 2027.
Ontario’s Progressive Conservative government has committed to building 58,000 new and upgraded long-term beds, with 148 projects representing a total of 24,101 beds under construction or with ministry approval.
