June 18, 1996
(Health)

The following statement was issued today by Lloyd Matthews, Minister of Health. It was also read in the House of Assembly:

Purchase of Grace Hospital

I rise today to inform Honourable Members that government has reached an agreement with the Salvation Army for the purchase of the Grace Hospital properties. The purchase price for the acquisition of properties is $4.765 million, payable over the next six years at an interest rate of 9.38 per cent.

This agreement was negotiated over the past year and reflects principles similar to the agreement signed between government and the Sisters of Mercy for the purchase of the St. Clare's properties. Under the agreement, government will reimburse the Salvation Army for buildings and lands as well as cash contributions to the Grace Hospital.

The presence of the Salvation Army will continue while the Grace Hospital remains in operation. In addition, two board members nominated by the Salvation Army will continue to serve on the board of the Health Care Corporation of St. John's. The Salvation Army will play a key role in ethical issues through the Health Council, which will continue to advise the Health Care Corporation Board on such matters.

While services at the Grace Hospital will be transferred to other sites, the Health Care Corporation plans to operate ambulatory clinics at the nurses residence.

The acquisition of both the Grace and St. Clare's properties is necessary in view of the new board structure. Now that ownership of all properties rests with government, restructuring in the St. John's area can move forward.

I would like to take this opportunity to pay tribute to the service provided by the Salvation Army to the people of this province. The Salvation Army's commitment to the provision of quality health care is greatly appreciated by government and by the citizens of the province. As Minister of Health, I look forward to the continued presence of the Salvation Army in the context of the overall health and social sectors.