Normally, breaking ground on a new facility would be cause for celebration. It was for people in Maxville and North Glengarry last week when the redevelopment project for the not-for-profit long-term care home Maxville Manor broke ground. The $69 million project mirrors the ongoing Dundas Manor project that is well into its construction. What was not celebratory that day, for some, was the announcement by Ontario’s Long-Term Care minister Natalia Kusendova-Bashta that LTC projects will have a new funding formula going forward. That formula benefits new projects with additional money, but for projects already underway – they receive no new money.
Dundas Manor, which was announced in 2020, saw its cost rise to $63 million. Ministry funding covers $45 million, and leaves an $18.5 million gap. The WDMH Foundation has been working tirelessly to raise this money, some of which came from municipal commitments, including $4 million from SDG Counties. The organization still has $3.5 million to raise, and whatever has not been raised will be financed by the Manor. The provincial funding is not insignificant, but under the old model on a per-bed basis, only accounts for 71 per cent of the project cost. Maxville Manor will receive 85 per cent of the total cost to build the project from the province. If Dundas Manor was included in this new formula at 85 per cent it would add at least $8.5 million more provincial dollars. That means $8.5 million less would need to be funded through the WDMHF efforts, and keeping $8.5 million in the community for other needs.
Dundas Manor and Maxville Manor were both on the same development track initially. Maxville’s project was delayed due to cost estimates and scope of project work. That delay works to that project’s benefit. Dundas Manor’s proponents did all the right work in the right way, followed all the rules and got everything to the point of being ready to go. For that effort, under the new funding formula, Dundas Manor receives an $8.5 million penalty for following exactly what they were supposed to do. This is not the only not-for-profit LTC project to be penalized like this. Maple View Lodge in Athens is an $86 million project by Leeds and Grenville County. The province is funding only $43 million of that project. Under the new funding formula, that project would receive $30 million more in funding!
There are many not-for-profit LTC home projects already under construction in Ontario. All started because they jumped through the right hoops, did the work, and were ready to go. They should not be penalized for having already started construction, and receive the same funding that new projects receive. To do less is to penalize communities for being proactive.
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