James Bay health authority says 'huge surprise' in federal budget could halt hospital construction

There's confusion about the future of the new hospital for Ontario's James Bay coast, with the local health authority saying no funding was allotted in the recent federal budget, putting the long-delayed $2.7-billion project "in jeopardy."

Lynne Innes, CEO of the Weeneebayko Area Health Authority, says she was expecting to see $1.3 billion, the federal share of the new hospital currently under construction in Moosonee, listed in the April 16 budget.

She says it was later confirmed to her that there is no funding allotted this year for the hospital, which is to replace the 75-year-old Weeneebayko General Hospital on Moose Factory Island.

"It was a huge surprise," says Innes, adding she also confirmed the money was not left out of the budget in error.

"If we don't have the money to move forward, we can't continue building the project. And we're still waiting for response from the federal government."

Innes says work on the new hospital will stop if the federal funding is not received by the end of May.

Hajdu says she's 'not walking away'

Indigenous Services Minister Patty Hajdu took a question about the James Bay hospital project in the House of Commons in Ottawa on Thursday. 

"I'm not walking away from that commitment and we will get that hospital built," Hajdu said.

Hajdu's press secretary, Jennifer Kozelj, also said in a statement that "we are investing over $158 million to support the hospital project."

"This includes funding for Phase 1 of the project, delivering a total of 30 units providing 120 beds. We are also supporting the existing Weeneebayko General Hospital for certain costs related to physician and nursing services, hospital administration, equipment, operations and maintenance."

But she didn't respond to specific questions from CBC about the funding not being accounted for in this year's budget.

"Well it certainly puts the project in jeopardy of not moving forward, which is of huge concern because it's a health and safety issue for the people of the James and Hudson Bay coasts," said Innes. 

After decades in the planning stages, the new hospital got formal approval to go ahead in 2019. The health authority says over $100 million in public dollars have already been spent in designing the sprawling health campus and the first phase of construction.

Health authority CEO writes PM

Innes wrote to Prime Minister Justin Trudeau on Monday, warning "any delays in this project will result in significant further financial and legal risk."

"We request clarity on Canada's decision to not further provide funding for this vital health project, for Canada's position on the future of our project, and Canada's plan to provide the agreed-upon funding to ensure that we adhere to project timelines and ensure that the cultural well-being and physical safety of our people," the letter reads. 

"We encourage that Canada immediately rectify this decision and provide the federal contribution to ensure that we do not jeopardize the health and safety of our people or further increase construction costs due to delays."