(Capital Projects—Yukon Hospital Corporation)
Whitehorse, 26 February 2013—The Yukon Hospital Corporation did not fully assess the health care needs in Dawson City and Watson Lake before undertaking work to replace the existing health facilities in those two communities, says Michael Ferguson, the Auditor General of Canada, in his Report presented to the Speaker of the Legislative Assembly today.
“Without fully assessing the communities’ health care needs, the Corporation cannot show that the hospitals it has been building are in fact the most cost-effective option to meet those needs,” said Mr. Ferguson. “In addition, staffing these facilities will be an ongoing challenge.”
The audit examined three capital projects—the two hospitals and the Crocus Ridge staff residence—that will cost more than $72.5 million to build. The Corporation did not determine the incremental operating costs for the new hospitals until construction was well under way. The cost of operating the new facilities will increase significantly over that of the older facilities.
The audit found that the Corporation adequately managed the construction process for the three building projects. Most contracts were competitively tendered, and most change orders were justified. Projects were regularly monitored, but will be over budget and completed late.
"The Corporation expects that significant capital project work will be required in the future at the Whitehorse General Hospital Campus,” said Mr. Ferguson. “I believe that the recommendations from this audit will be helpful in managing those projects."
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