Ottawa to spend $1.2-billion on hospital for First Nations in Northern Ontario, after weeks of pressure

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The federal government says it will spend $1.2-billion to replace an aging hospital serving Ontario’s northern First Nations, after pressure from Indigenous leaders and the province, who warned the lack of funding commitment was putting the project at risk.

The announcement ends weeks of tension between Ottawa and Ontario over who should fund the new hospital, located on the west coast of James Bay in northern Ontario, with First Nations leaders calling on both levels of government to include Indigenous voices in future negotiations to prevent delays.

Indigenous leaders, hospital CEOs, the Ontario government and the federal NDP had sounded the alarm when funding to replace the Weeneebayko General Hospital in Moose Factory, Ont., was absent from the Liberals’ spring budget. Ottawa had insisted that health care funding was a provincial responsibility, while Ontario and the hospital authority pointed to a written agreement showing the federal government promised to cover 45 per cent of the cost of a new health campus.

The federal NDP also said it told the Liberals the party would not agree to support a motion to speed up the federal budget implementation act in Parliament unless the government came through on the funding for the health project.

After weeks of debate, Indigenous Services Minister Patty Hajdu announced Monday that Ottawa will spend $1.2-billion on the new hospital. The current facility was built in 1950 as a federal “Indian hospital” to isolate Cree and Inuit patients suffering from tuberculosis, and is the oldest non-renovated hospital in the country.

The federal funding will go toward the construction of a new hospital facility in Moosonee, Ont., as well as an elder care lodge, and a dedicated ambulatory care centre on Moose Factory Island. The new hospital will serve the 12,000 people in the Weeneebayko region in Ontario’s James Bay and Hudson Bay coasts, which is made up primarily of Cree First Nations.

“I’m really thrilled to announced the federal government will support Ontario with funds to fund a new hospital built in Moosonee,” Ms. Hajdu said Monday.

The federal government said the money will flow through the province and the Weeneebayko Area Health Authority (WAHA), and will also be used to upkeep the current hospital until a new one is built. Ms. Hajdu said her government has already spent $200-million on the new project since 2018.

The cost of the redevelopment project has been pegged at $2.7-billion. The province is putting up $1.36-billion, while Ottawa was expected to spend $1.34-billion. The new hospital network is set to be built by 2030.

Ms. Hajdu said the hospital project was strongly supported by Prime Minister Justin Trudeau “who felt very fervently” that it needed to be completed.

Before the funding could flow, Ms. Hajdu said the federal government had “many questions” for the province about the money and the nature of the payment contracts, and Ottawa received clarity from the contracting company itself. “What changed was our ability to work directly with the contractor,” she told reporters in Ottawa.

Assembly of First Nations National Chief Cindy Woodhouse Nepinak, who appeared alongside Ms. Hajdu in Ottawa, said the funding marks “a significant step forward” to fulfill a long-standing commitment. She said it was a “hard-fought battle” to have the same services as other Canadians.

“We know that many First Nations people do not have equitable or reasonable access to health care services compared with the general Canadian population,” she said.

“We need to be at the table. We can’t be left out of all of these negotiations.”

At an announcement in Moosonee on Monday, Ontario Health Minister Sylvia Jones also announced an additional $44-million for design and early construction of the new hospital, in addition to previous funding announcements.

“This does not mean the advocacy for this project ends today,” she said, adding that it must proceed without delay.

Lynne Innes, president and CEO of WAHA, called the news “an incredible step forward for the health and well-being of the people in our region.”

Chief Peter Wesley of Moose Cree First Nation said the new funding will help address long-standing issues with the current hospital.

“The hospital is currently in such disrepair that it poses a severe health risk rather than being a place for healing,” he said.

Anthony Dale, president and CEO of the Ontario Hospital Association, which had also put pressure on Ottawa to fund the hospital, said in a statement the organization was grateful the federal government reaffirmed its funding commitment, adding WAHA plays an essential role in delivering care to northern Indigenous communities.

NDP MP Charlie Angus, who represents the northern Ontario riding of Timmins-James Bay, welcomed Monday’s announcement. But he said it was wrong to force the community to wait for this funding.

“The government created an enormous amount of unnecessary chaos,” he said in an interview.

“They attempted to walk away on their obligation to provide proper health services in the James Bay region and they got called on it.”