September 4, 1996
(Health)

Premier Announces Plans for Hospital Restructuring in St. John's

A new Janeway/Children's Rehabilitation Centre for pediatrics and obstetrics will be constructed at the General Hospital site in St. John's as part of the overall plan for the reorganization of health care services in the city, Premier Brian Tobin announced today. The $100 million redevelopment of hospital services in St. John's will result in a more efficient health care system at a substantially lower cost to the people of the province, said the premier.

This construction project is the first of its kind in this province to be funded entirely by operational savings, added Premier Tobin. Over the next three years, costs for the construction of the new facility, as well as renovations at St. Clare's and the General Hospital, will be paid for entirely through savings realized by consolidating services. These savings are estimated at between $20-$25 million annually. By providing health services at fewer sites, the Health Care Corporation will be in a position to reduce duplication and administrative costs, while enhancing patient care. The plans are now in place for a health system that will better meet the needs of Newfoundlanders and Labradorians into the 21st century.

The new health facility will be connected to the north side of the General Hospital site. This new four floor facility will house all aspects of the Child Health Program, including children's rehabilitation services. In addition, the labour and delivery component of the Women's Health Program will be located in the new structure.

Eileen Young, chairperson of the Health Care Corporation of St. John's, says the new facility follows the original plans for redevelopment laid out by the corporation last year. At the time we announced site redevelopment, we made a commitment to maintain and enhance child health. Within the new facility, children will have access to the advanced one-of-a-kind medical technology and health care expertise currently based at the General Hospital, said Ms. Young. Children will no longer have to be transported to the General Hospital for certain procedures. As well, said Ms. Young, we are bringing together obstetrical services with pediatric services so new mothers will no longer be separated from sick newborns requiring medical attention.

Ms. Young added, the next step in hospital restructuring is to seek proposals for the architectural design of the new facility, and to begin renovation work at other sites. That work should commence immediately.

The Minister of Health, Lloyd Matthews, says he is anxious to see the project get under way. In St. John's, and in the rest of the province, we are working towards improving the level of service in a more cost effective manner, he said.

Mr. Matthews commended the board and the staff of the Health Care Corporation of St. John's for their dedication to reorganizing and improving health services. Since the intention to redevelop hospital services in St. John's was first announced by the Health Care Corporation, the staff have undertaken an extensive planning and consultative process with a variety of health professionals, interest groups and members of the general public. The strategy prepared by the Health Care Corporation is indicative of their commitment to ensure the transition is well planned and well communicated.

Contact: Jill Sooley, Department of Health, (709) 729-1377 or Cathy White, Health Care Corporation, (709) 758-1339.

BACKGROUNDER
In June of 1995, government and the Health Care Corporation of St. John's announced an outline of a plan for the consolidation of hospital services in St. John's. The announcement followed a decade of debate and dialogue regarding the need to restructure health services in the city. Under the plan, the programs and services at three existing facilities (the Janeway, the Children's Rehabilitation Centre and the Grace General Hospital) would be transferred to other acute care centres in St. John's. Over the past year, an extensive planning and consultative process was undertaken by the Health Care Corporation of St. John's, involving both users and providers of health services.

• That process has given rise to a new plan for delivering health services on fewer sites. Main features of the new plan include the following:
• Construction of a new health centre for pediatrics and obstetrics. The new four floor facility will be connected to the north side of the General Hospital site.
• The transfer of services currently provided at the existing Janeway and at the Grace Hospital to the General Hospital and to St. Clare's Mercy Hospital by the spring of 1999. (The original schedule outlined December 1998 as the completion date, however time lines have since been adjusted).
• An expenditure of approximately $100 million in new construction and renovations. The cost of constructing the new facility is estimated at $52 million. The cost of renovations at St. Clare's and the General Hospital to accommodate programs and services is estimated at $29.5 million. An additional $18.5 million will be spent in professional fees, parking and financing during construction.
• In year 1 of the project, $15 million will be spent, $45 million in year 2 and in 1998/99, $40 million.
• This project requires no new money from government. It will be financed entirely from operational savings. The Health Care Corporation will save approximately $20-$25 million per year in consolidating services and reducing the number of sites through which health care is delivered. Those savings will fund the cost of construction and renovations.