November 22, 1996
(Executive Council)

New Hospital for Labrador

Premier Brian Tobin, Health Minister Lloyd Matthews and Voisey's Bay Nickel Company President Stewart Gendron, today announced plans for the construction of a new hospital in Happy Valley-Goose Bay. In partnership with Voisey's Bay Nickel Company, a subsidiary of Inco Limited, government will now proceed with building a new hospital in Labrador.

"There is a genuine need for a new health facility to serve the people of Labrador and government is committed to meeting that need," said Premier Tobin. "A new hospital that will ensure access to quality health care for all Labradorians is necessary to address the future health needs of an evolving and developing region," said the Premier.

"Voisey's Bay Nickel Company is a long term corporate citizen of Labrador," said President Stewart Gendron. "We have to ensure there are adequate health and medical facilities for our employees, something we are accustomed to doing in communities where we have operations such as Thompson, Manitoba; Sudbury, Ontario; and Soraoka, Indonesia."

The new hospital will replace the Melville Hospital in Happy Valley-Goose Bay. The existing facility is a wooden structure built in the early 1950s. Health Minister Lloyd Matthews says the hospital is inefficient and is becoming increasingly costly to maintain and operate. "Replacing the Melville Hospital with a new, more efficient health facility has been a priority of the Department of Health and the Government for some time," said the minister. Under the previous administration, the planning for a new hospital to serve Labrador was carried out in 1993. At that time, the cost of the new facility was estimated at $26 million. Given the province's fiscal pressures, the cost of financing this project could not be readily identified within existing budgets.

Government and Voisey's Bay Nickel Company, will each contribute half the cost of the project. Voisey's Bay Nickel Company will contribute up to $15 million for construction. All planning documents will be updated and construction will begin next summer. The new hospital is scheduled to be completed by December 1999.

Health Minister Lloyd Matthews says this is a very significant initiative in terms of public/private partnership in health care development. "This is clearly one example of how both the public and private sectors can benefit by pursuing new approaches and partnerships. Inco's contribution to health care in Labrador is greatly appreciated by government," said Mr. Matthews.

The existing Melville Hospital serves the Happy Valley-Goose Bay area and northern Labrador communities with a total population of just over 14,000. The hospital provides acute, primary and secondary health services. The new hospital will maintain all programs and services currently provided.

Contact: Jill Sooley, Department of Health, (709) 729-1377.

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HIGHLIGHTS

New Hospital - Happy Valley-Goose Bay

• The Melville Hospital provides acute, primary and secondary health services to a population of 14,298 people living in Happy Valley-Goose Bay and northern Labrador communities.
• The hospital is a wooden structure built in 1953. It is an aging facility, and is becoming increasingly costly to maintain and operate.
• The Department of Health has recognized the need for the construction of a new hospital to service the region. Planning carried out in 1993/94, estimated the cost of replacing the existing facility at $26 million.
• Although the project is a priority of government, no adequate sources of funding have been identified within the department's budget to fund construction to its completion.
• Government has now entered into an agreement with the Voisey's Bay Nickel Company, a subsidiary of Inco, to jointly fund this project. Both parties will contribute half the cost of construction. Inco has committed funding up to $15 million.
• Construction work will begin in the summer of 1997 with a target completion date of December 1999.
• The programs and services currently offered at the Melville Hospital will be maintained. This includes ambulatory care, diagnostic services, general surgery, obstetrics and gynaecology, primary care, etc.
• Significant economic development potential also exists through this project. An estimated 139 jobs could be created through economic spin-offs, in addition to construction jobs.