The Fraser-Fort George Regional Hospital District shares in the capital funding for health facilities and medical equipment within its boundaries. This includes the following principal health facilities, operated by the Northern Health Authority:
- University Hospital of Northern British Columbia
- Mackenzie and District Hospital and Health Centre
- McBride and District Hospital
- Valemount Health Centre
All members of the Regional District of Fraser-Fort George Board of Directors serve as Directors with the Regional Hospital District. The Chair is Joan Atkinson (District of Mackenzie) and the Acting Chair is Kyle Sampson (City of Prince George).
Financial information
Infrastrucure funding for UHNBC patient care tower
On September 12, 2024 the Fraser-Fort George Regional Hospital District Board of Directors voted in support of a capital expenditure bylaw to authorize $318,712,000 in RHD funding for the patient care tower at UHNBC.
Background information on RHDs and the project
Regional hospital districts
Regional hospital districts (RHDs) are designated under provincial law to raise capital funds for hospital facilities in their areas. RHDs provide the local share (up to 40 %) of funding for the capital costs of construction, acquisition and maintenance of hospital facilities and major equipment. Capital costs are shared with the regional health authorities.
The Fraser-Fort George Regional Hospital District Board is made up of the same 14 municipal and electoral area directors as the Regional District of Fraser-Fort George Board.
Spending authority
RHDs play a crucial role in financing capital improvements for healthcare facilities within their service areas. The primary function is to raise revenue from local property taxes to support various capital investment needs, including:
- acquiring property
- renovations and new construction
- purchasing medical equipment
RHDs are empowered to provide capital expenditure grants for these purposes. They have the flexibility to use annual operating budgets, reserves, or borrowing through the Municipal Finance Authority to fund these projects. Typically, RHDs contribute up to 40% of the total capital expenditure and in the Regional District of Fraser-Fort George, projects benefit the nearly 100,000 residents of the four municipalities and seven electoral areas.
RHDs are different from local governments because they can borrow funds for capital investments without requiring elector approval.
Funding healthcare projects
The financial planning and budgeting for capital investments in healthcare facilities is carried out by regional health authorities, like the Northern Health Authority. Typically, RHDs cover up to 40% of the capital costs, while the remaining 60% is provided by the health authority through:
- provincial funding for specific capital projects
- health authority operational budgets
- contributions from healthcare foundations or community service clubs
Although health authorities are not legally required to include RHDs in their capital planning activities, a Memorandum of Understanding (MOU) exists between Northern Health and all northern RHDs, including the Fraser-Fort George Regional Hospital District. This MOU commits Northern Health to consult with and update its RHD partners on capital plans in joint meetings held in the fall and spring.
Paying for projects
Funding for hospital expansions and improvements comes from various sources:
- Provincial government: allocates funds through specific capital projects and operational budgets
- regional hospital districts: contribute up to 40% of the capital costs through direct contributions from operating budgets, reserves or borrowing
- health authorities: contribute through their operational budgets and partnerships with third parties like health care foundations and community groups
Impacts to property taxes
The Fraser-Fort George Regional Hospital District creates 15 year long-term Financial Plans, which are shared on this website for anyone to review. Funds have been accumulated for this hospital expansion, and other infrastructure projects, for the past 10 years. The capital reserve fund balance is $73.4 million (as of July 31, 2024).
Additional funding will need to be accumulated if the UHNBC expansion is approved, and that comes through requisition (property taxes), borrowing and investment income. The required adjustment to requisition is expected to be under 3% over the term of borrowing.
RHD Board decision
On September 12, 2024, the RHD Board of Directors voted in support of a capital expenditure bylaw for the UHNBC patient care tower. A bylaw is required to legally implement decisions such as annual budgets or new funding mechanisms, like capital funding or long-term borrowing.
Improving patient care
The existing UHNBC facility, built in 1958 with additions in 1978 and 2003, no longer meets the needs of the growing region. The population of Prince George alone has increased by more than 400% since the 1961 Census. The healthcare facility capacity has not kept up to population growth.
The planned expansion will:
- increase bed capacity - more than double the number of beds, addressing critical needs in surgical, mental-health, and cardiac services
- enhance cardiac care - bring invasive cardiac care to Northern BC and centralize cardiac services in a new 11-storey acute-care tower with specialized units
- expand surgical facilities - add 47 new beds and increase operating rooms from seven to 12
- improve mental health services - increase the number of treatment beds and add specialized units for youth and adult psychiatric care
The expansion will provide better-coordinated patient care and address gaps in current healthcare services, benefiting residents both in Prince George and surrounding areas.