Who is paying for this private long-term care development?

Perhaps lost in the hullabaloo of Premier Doug Ford's visit to North Bay last week to announce the construction of a private long-term care facility was any mention of the financial particulars of the development deal.

Waters Edge residents are expected to relocate to their new home, to be built on the former St. Joseph's Hospital–McLaren site overlooking Lake Nipissing in 2023. The new long-term care home will provide a total of 160 (12 new) safe, modern long-term care spaces. 

See original story: Company 'plans to move ahead' with new North Bay 160-bed long-term care facility

The gathered dignitaries, from no-longer-benched Minister of Long-Term Care Rod Phillips to Nipissing MPP Vic Fedeli, and Sienna Senior Living President and CEO Nitin Jain all spoke generally about the $55-million project but gave no indication publicly as to how those costs would be borne by the proponents.

"We are going to build the nicest long-term care home this town has ever seen," said Ford, July 5, while repeatedly offering a broad view of the project's funding as part of "the province's $2.6 billion investment into long-term care in Ontario."  

With the recent consternation from partner municipalities over the cost of redeveloping non-profit Cassellholme and the financing arrangement with Infrastructure Ontario, it is of public interest to examine the funding of the soon-to-be-renamed Sienna/Waters Edge. 

According to Sienna, the for-profit company has committed to investing approximately $55 million, "which is 100 per cent of the initial redevelopment costs of our care community in North Bay."

“Based on our solid balance sheet and credit rating, we are looking to finance the project with a major Canadian financial institution, Sienna’s available cash flows and existing credit facilities, as required,” advises Nadia Daniell-Colarossi, Manager, Media Relations and Communications for Sienna.

Asked if the current Waters Edge property on William Street would be leveraged or sold off, Daniell-Colarossi responds, "At this time, no decisions have been made on the future of our existing Waters Edge Care Community."

The Ministry of Long-Term Care will provide construction subsidies to Sienna, both at the time the building is substantially complete, as well as over an extended period following occupancy of the building. Through a spokesperson, the MLTC confirms the North Bay Sienna development is eligible for up to $54.2 million in funding. 

"The project will be eligible for a Construction Funding Subsidy of up to $31 million, a Development Grant of $4 million, and the remaining amount for operational and other project-related costs, e.g., training, orientation and ongoing operating costs. Costs have not been finalized as the project is in the planning stages. Once project costs have been finalized by the operator, the ministry will be better able to provide funding amounts that are reflective of the actual costs."

While Sienna residents and staff have been gravely affected by the COVID-19 pandemic as hundreds have died while in the company's care, Sienna has consistently paid out millions of dollars in dividends to its shareholders. 

See related: Preparing for 'heartbreaking' COVID-19 outcomes at long-term care homes

According to a Canadian Press report, COVID-19 has killed more than 300 who were living in Sienna homes. Three of their facilities, Altamont Care Community in Toronto, Woodbridge Vista Care Community in Woodbridge, Ont., and Camilla Care Centre in Mississauga, Ont. had to be taken over by the province due to various levels of inadequate care and staff shortages.

See: The coronavirus exposes the perils of profit in seniors' housing, expert says

While long-term care reform is expected, according to this report, for-profit homes were not the only facilities to struggle during the pandemic.