Plenary Health signed a fixed price contract to design, build, finance and maintain the new Peel Memorial Centre for Integrated Health and Wellness. The value of the contract is approximately $530 million.
The DBFM funding model
The Design, Build, Finance, Maintain model (DBFM) is a Government of Ontario model for financing large public infrastructure projects – including new hospitals.
Under this financing model, the private sector is responsible for the design, construction, financing and long-term maintenance of Peel Memorial. Osler will pay for the project over a 30-year term, beginning after the building is considered at ‘substantial completion’. This could be likened to paying a mortgage on a home over a fixed period of time. Peel Memorial will remain publicly owned, publicly controlled and publicly accountable.
A number of hospitals in the Greater Toronto Area are using the DBFM model for their redevelopment projects. These facilities include the Centre for Addiction and Mental Health in Toronto, Humber River Regional Hospital and the new Oakville Hospital.
How are all these costs for the building and staff paid for?
While 90 per cent of the construction costs of the new Peel Memorial will be funded through the Government of Ontario, there is still a portion of the project (the “local share”) that must be raised by Osler and its community.
The City of Brampton has generously contributed $60 million towards the Peel Memorial redevelopment project.
The community share
As with all hospital projects in Ontario, the community is responsible to pay for 10 per cent of the construction costs and 100 per cent of the equipment costs for Peel Memorial.
The support of the community – health care partners, municipalities, the public through donations – is important to the future of this project