A $57.5-million budget has been adopted by the Nanaimo Regional Hospital District board, with an increase of 21 per cent to the tax levy.
The budget passed during a board meeting on March 25. Some of the budget drivers are $3.5 million for capital equipment and minor projects, $10.5 million for major capital projects and $6 million for debt servicing on major capital projects.
Janice Perrino, board chairperson, described what she felt as "capital creeping" in the type of capital expenditures the board is funding, from formerly just major capital projects to anything over a certain threshold.
"It used to be years ago that we were funding just big pieces of equipment – MRIs, CTs – today we're funding so much more and it is because their operational dollars just don't cover all of the costs."
In minor capital equipment and projects over $100,000 for the hospital in 2025, the board is funding additional bed capacity on floor two, replacement of the ICU air handling unit, replacement of copper water lines, biomed office renovation, elevator modernization, kitchen fan, freezer bank remediation and repairs, emergency water storage tanks, rehab air handling unit renewal and patient room improvements.
Directors Lehann Wallace and Leanne Salter were the only board members to vote against the budget. Both drew attention to $11.8 million for upgrades to the planned cancer centre that was funded in the board's 2024 budget.
"I'll bring this back to the multiple promises that the cancer centre at the hospital is being funded. We will never be able to acquire enough reserves to fund what our priorities are if we keep this 'capital creep.'" Wallace said.
In a presentation to the board on Feb. 25, David Boychuk, on behalf of Island Health, explained that during the last year the design of the cancer centre "shifted somewhat" to a single building in what he called "a unified care model." This means that while in the old design some functions would have remained in the NRGH ambulatory care building, such as the community oncology network, in the new design it will now be located in the cancer centre. An additional change is that the interim hospital pharmacy will be moved to a trailer on the premises. Boychuk told the board that services, including the expansion of the community oncology network, will continue as planned.
A reserve contribution of $36.7 million was budgeted to bring the reserve balance to $100 million by the end of the year.
