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Cost of Richmond Hospital redevelopment climbs by $1.1 billion

Click to play video: 'Richmond Hospital redevelopment costs double'
Richmond Hospital redevelopment costs double
The cost of the Richmond Hospital redevelopment project has ballooned to $1.96 billion, $1.1 billion more than forecast in the hospital's original 2020 business plan. As Alissa Thibault reports, the hospital joins a growing list of projects that will cost more than originally projected – Jun 5, 2024

The Richmond Hospital redevelopment has joined the list of B.C. projects that will cost more than originally projected.

The Ministry of Health revealed Tuesday that the total cost of the redevelopment is now projected at $1.96 billion.

That’s $1.1 billion more than forecast in the hospital’s original 2020 business plan.

The province cited rising construction costs as the primary driver of the bigger price tag.

Click to play video: 'Health Minister Adrian Dix with more on the massive Richmond Hospital upgrade'
Health Minister Adrian Dix with more on the massive Richmond Hospital upgrade

“All of the projects have gone up in price over the last two years significantly, that’s true of all public and private sector projects and it’s true for hospitals,” Health Minister Adrian Dix said.

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“The good news is this is long delayed funding for hospitals — it wasn’t spent for decades.”

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The provincial government will pay for most of the project, with Vancouver Coastal Health contributing $30 million and the Richmond Hospital Foundation adding another $40 million.

“We’ve got a group of people, with the greatest respect, that have no experience in overseeing large, complex projects,” Opposition BC United Leader Kevin Falcon said.

“We saw this with the Cowichan hospital which went from $800 million to over $1.4 billion, and still counting. We saw the Surrey second hospital they’ve been promising for seven years now, that has gone over budget by over $1.1 billion and is years behind schedule.”

The redevelopment includes a new acute care tower, a bigger emergency department, more operating rooms and an additional 113 hospital beds.

Demolition related to Phase 1 of the project is slated for this summer, with a target of 2031 for the redevelopment to be fully completed.

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