The newest chapter in Royal Inland Hospital’s expansion saga unfolded this week as Interior Health confirmed it won’t ask the Thompson Regional Hospital District for additional funding to cover the latest cost overruns at the patient care tower.
The $417-million project, which has faced numerous delays and financial challenges since breaking ground, won’t require local taxpayers to shoulder any more of the growing bill. That responsibility will fall squarely on Interior Health’s books, according to IH spokesperson Susan Duncan.
“Interior Health will be covering any cost overruns,” Duncan told media on Wednesday. “We are working with the contractor to minimize those costs, but we won’t be asking the hospital district to contribute additional funds.”
The nine-storey tower, originally scheduled to welcome patients in July 2022, has seen its opening timeline pushed back repeatedly. Current projections suggest the facility won’t be operational until sometime in early 2024 – nearly 18 months behind schedule.
Dale Bass, Kamloops councillor and TRHD chair, expressed relief at Interior Health’s decision to absorb the extra costs rather than approaching local government partners for additional funding.
“It’s definitely good news for taxpayers in our region,” Bass said. “The hospital district has already committed substantial funding to this project, and there’s a limit to what our communities can reasonably contribute.”
The regional hospital district had previously approved a contribution of approximately $172 million toward the project – roughly 40 percent of the original budget. That figure represented one of the largest healthcare infrastructure investments in the region’s history.
Construction challenges have plagued the project from the start. EllisDon, the primary contractor, has faced criticism for timeline delays attributed to everything from supply chain disruptions during the pandemic to labour shortages and technical issues with the building’s systems.
Former Kamloops Mayor Ken Christian, who chaired the hospital district during the project’s initial phases, had previously raised concerns about the project’s management and questioned whether the procurement process had adequately protected taxpayer interests.
“When you have a project of this magnitude, you need to have robust oversight and accountability mechanisms,” Christian said in a 2022 interview. “The question now is whether those mechanisms were sufficient.”
The tower is designed to add 11 operating rooms and dramatically improve patient services at RIH, with new mental health treatment spaces, respiratory therapy facilities, and maternal/child health services. Despite the delays, Interior Health maintains these improvements remain critical for healthcare delivery in the region.
BC’s Ministry of Health has been monitoring the situation closely. A ministry spokesperson confirmed that major capital projects across the province have faced similar challenges in recent years.
“Healthcare infrastructure projects are complex undertakings that have been particularly vulnerable to the economic uncertainties we’ve experienced,” the spokesperson noted. “The ministry continues to work with health authorities to manage these projects as effectively as possible.”
For Kamloops residents, the delays represent more than just budget figures. Courtney Millar, who works as a nurse at Royal Inland, expressed frustration with the ongoing situation.
“We’re all eager to see this facility open,” Millar said. “The current hospital is desperately overcrowded, and we’ve been told for years that relief is coming. Meanwhile, both staff and patients continue dealing with less-than-ideal conditions.”
The patient care tower represents the largest healthcare infrastructure investment in Kamloops in decades. When completed, it’s expected to significantly improve healthcare delivery for residents throughout the Thompson-Cariboo region who rely on RIH as their primary tertiary care facility.
According to recent figures from the BC Nurses’ Union, occupancy rates at Royal Inland have consistently exceeded 100 percent in recent years, underscoring the urgent need for expanded facilities. The tower is expected to ease this pressure substantially once operational.
Interior Health has not disclosed the exact amount of the latest cost overruns, but industry analysts suggest major healthcare construction projects typically see increases of 10-15 percent beyond original budgets when facing significant delays.
The Thompson Regional Hospital District board will receive a detailed update on the project at its next meeting, though Bass indicated they won’t need to make any decisions regarding additional funding given Interior Health’s commitment.
“We’ll continue to monitor progress closely,” Bass said. “The important thing now is ensuring this facility opens as soon as possible and delivers the care improvements our communities have been promised.”
For now, Interior Health says it’s focused on working with contractors to complete the remaining work and prepare for the operational transition – whenever that ultimately occurs.
