Nova Scotia government closes deal to formalize sale of care facility

The Nova Scotia government has recently finalized a deal to sell a former hotel construction site in West Bedford to Shannex, a well-known long-term care operator, for a staggering $114 million. The property has been converted into a health-care facility that will cater to patients who no longer require acute care hospital beds but are still in need of recovery or awaiting a long-term care placement.

According to Derek Spinney, the vice-president of corporate services and infrastructure for Nova Scotia Health, the first wing of the building is already accommodating 34 patients, with all 68 beds expected to be filled by the end of next month. Construction on the second wing, which will house an additional 110 beds, is set to be completed by April 2026. This is when the official sale to Shannex will take place, and the agreed-upon funds will be exchanged.

As part of the operating agreement, Shannex will manage the site for 25 years, with the option to extend for an additional 10 years. The company will receive approximately $45 million annually to operate the facility, following a per-bed funding model that aligns with the long-term care framework. Spinney mentioned that the fee may vary in the initial year of operation due to the gradual readiness of all beds.

The staffing levels and services at the site can be adjusted as needed, which not only saves money for the government compared to patients occupying acute care beds in hospitals but also ensures that patients receive the appropriate level of care. The site is expected to have 349 staff members, including registered nurses, licensed practical nurses, and continuing care assistants.

While the Health Department officials have not disclosed the specifics of the contract, citing the need for review, past controversies surrounding the acquisition of the property have raised questions about the process. Health Minister Michelle Thompson declined to address concerns from reporters, as the government continues to limit interactions with the media.

The province had purchased the unfinished construction site from a private developer for $34 million a couple of years ago, despite potential concerns raised in an expert report regarding its suitability for patient care. Following a critical report by the auditor general last year on the procurement process and untendered contracts related to the project, Shannex expressed interest in acquiring and expanding the property to enhance its healthcare capabilities.

Overall, the sale of the former hotel construction site to Shannex signifies a significant investment in the healthcare infrastructure of Nova Scotia, providing a vital resource for patients in need of specialized care outside of traditional hospital settings.