Yet another major capital project in the Metro Vancouver region is seeing steep cost overruns, with the latest project being the redevelopment and expansion of Richmond Hospital.
The provincial government provided a major update on the project’s budget today — it is now expected to cost $1.959 billion, representing an increase of about $1.1 billion.
When the project’s business case was created and approved in 2020/2021, the estimated cost was pegged at $861 million. This previous estimate was made just before the sharp inflationary environment that began in early 2022.
The provincial government will now cover $1.889 billion of the updated project cost, with Richmond Hospital Foundation covering $40 million and Vancouver Coastal Health covering $30 million.
The hospital project is necessary to provide a seismic-safe replacement of the 1966-built north tower, which is deemed to be highly unsafe — at risk of collapse during a modestly powerful earthquake and currently functioning with largely obsolete and failing building systems.
The existing hospital facilities are also undersized for Richmond’s growing population, especially the growing demographic of seniors.
Existing condition:
Existing condition of Richmond Hospital. (Google Maps)
Future condition:
2022 artistic rendering of the Richmond Hospital redevelopment. (Vancouver Coastal Health)
The new replacement nine-storey acute care tower, named the Yurkovich Family Pavilion, will have 359 acute care beds — an increase of 113 beds from the existing hospital configuration. The emergency department spaces will increase from 62 to 86 beds, the number of operating rooms will grow by three to a total of 11, and there will be additional medical imaging capacity — three more CT scanners and one more MRI.
“Our government made a commitment to people in Richmond to ensure there are modern, high-quality health-care services in place now and into the future,” said Adrian Dix, BC minister of health, in a statement today.
“The latest request for qualifications for a new patient care tower at Richmond Hospital that is seismically safe is great news for the community, as it signifies the progression of the redevelopment project in the right direction, and it assures people that they are one step closer to having the necessary acute care facility for their rapidly growing city.”
2022 artistic rendering of the Richmond Hospital redevelopment. (Vancouver Coastal Health)
2022 artistic rendering of the Richmond Hospital redevelopment. (Vancouver Coastal Health)
The procurement process for seeking a contractor to lead detailed design and construction is underway, with a shortlist of proponents invited to participate in the request for proposal (RFP) stage expected to be finalized by August 2024. The contractor could be selected by early 2025.
Construction on the new tower will begin in early 2026 for completion by late 2029 and opening by January 2030. After the new acute care tower reaches completion, the existing north tower will be demolished.
The entire redevelopment will be built in four phases, with three of the four phases focusing on completing renovations to existing facilities, building new infrastructure, and preparing the site for the major construction work of the new tower. The entire multi-phased project is expected to reach full completion by 2031.
The revised redevelopment cost for Richmond Hospital is now comparable to the $2.9 billion cost of the all-new Cloverdale Hospital in Surrey, the $2.4 billion cost of the Burnaby Hospital redevelopment, and the $2.2 billion cost of the all-new St. Paul’s Hospital campus in Vancouver’s False Creek Flats. The provincial government is also in the early stages of planning a major expansion of Surrey Memorial Hospital.