PEI invests almost $25 million in long term care

Today, the Honourable Dennis King, Premier of Prince Edward Island, and the Honourable Mark McLane, Minister of Health and Wellness, announced an agreement has been reached with private long term care operators which will result in a record investment of almost $25 million dollars.

The investment will include opening 54 new beds in the coming months, increased wages for workers in private facilities to move towards wage comparability with the public sector, and grants and financing programs to support the build of new beds.

The agreement includes licensing an additional 54 beds at facilities across the province, which was previously announced by Premier King at the State of the Province Address on February 27, 2024. The new beds will be located at Clinton View Lodge, South Shore Villa, PEI Atlantic Baptists Home, Garden Home, The Mount Continuing Care, Andrews of Stratford, Andrews of Parkwest, Whisperwood Villa and Gillis Lodge. The licensing process will begin immediately for these new beds.

As part of the renewed agreement, the daily bed rate will increase by $77.55 per day from $264.45 to $342.00. Operators have committed to allocating at least 65% of the increase towards increasing wages of workers in the private homes with a commitment to move towards wage comparability with the public sector homes, a commitment that was made in the 2024-2025 Operating budget that was tabled on February 29, 2024.

The province will be issuing a tender requesting proposal from private homes to build hundreds of new beds over the coming years later this Spring. To support current and potentially new operators, government will be providing grants and financing options to ensure expansion projects are viable. Through Finance PEI, operators will be able to access low-interest loans for construction. In addition, the Department of Health and Wellness will be providing grants for net-new beds starting later this year.

These investments are among the first steps in actioning the recommendations in the Long Term Care Review which focuses on ensuring safety and quality care for residents and workers in long term care homes.

Quotes:

"Expanding long term care beds is not just about providing additional beds; it's about extending compassionate care to those who need it the most and recognizing the important work that long term care workers provide to Island seniors by working towards wage comparability. These new beds, and the beds we will partner to build across the Island in the coming months, will also help to alleviate pressure in our hospitals by providing those awaiting long term care a place to call their forever home."

- Hon. Dennis King, Premier of Prince Edward Island

"Investing in long term care is extremely important when it comes to supporting our aging population here in PEI. By adding additional beds, we will assist Island seniors in receiving the appropriate care in long term care facilities, while easing pressures on the health care system from those waiting in hospital beds. Wage comparability is also an important priority that we are glad to see finally come to fruition, aligning wages for health care workers in both private and public facilities.''
- Hon. Mark McLane, Minister of Health and Wellness

"For us to meet the critical needs of long-term care for Island residents, we need to work together and support our health care partners. The investment we are making through the grant and loan programs is not just in building up long term care infrastructure but it is a direct investment into providing care for our residents across all Island communities."

- Hon. Gilles Arsenault, Minister of Economic Development, Innovation and Trade

"This exciting announcement will help improve care throughout many areas of the healthcare system. The new long-term care beds will mean more Islanders get the care they need in the community setting. These spaces will also reduce the pressure on our hospital beds, so patients who come to hospitals with emergencies and need a bed will get one sooner. This investment, as well as ongoing enhancements to homecare support, primary care, and mental health and addictions, will help ensure the system responds to Islanders' needs and provides the right care throughout people's lives."

- Melanie Fraser, Chief Executive Officer - Health PEI

"The Nursing Home Association of Prince Edward Island is very excited about this health care funding announcement. This investment into the long-term care sector will allow our members the ability to stabilize our workforce, expand services and grow the amount of long-term care beds in the province. Working together we will see wages increases for over 1000 health care staff, benefitting them and these families across the Island. Our homes are a critical piece to the health care system on the Island and we are committed to improving the health and well-being of our over 650 residents, our communities, and our province, and this funding will help us do just that."
- William McGuigan, Chair of Long Term Care Association

QUICK FACTS:

• Private operators have committed to opening 54 new long term care beds in the coming weeks including: Clinton View Lodge, South Shore Villa, PEI Atlantic Baptists Home, Garden Home, The Mount Continuing Care, Andrews of Stratford, Andrews of Parkwest, Whisperwood Villa and Gillis Lodge.
• The addition of 54 new beds will bring PEI's total long-term care beds to 1290.
• As part of the increase in the daily rate for operators, 65% of the new funding must be dedicated to increasing wages to move towards wage comparability, and at least 30% towards operating costs, which has increased in recent years.
• Health PEI will be issuing a tender later this Spring requesting proposals to build 100's of new beds in the coming year.
• To ensure expansion projects are financially viable, operating grants for net-new beds will be provided along with low-interest loans for construction. These programs are only available to operators committing to build new beds.
• $15 Million in financing has been allocated for the 2024-2025 fiscal year for operators to being new construction. Funding will be provided at two per cent interest.
• New construction projects will be eligible for up to 20% grants of the total project cost, to a maximum of $50,000 per bed, and a maximum of $1 Million per project.
• Budget 2024-2025 included $4.5 Million to support a move towards wage comparability for private nursing homes and community care facilities relative to government-owned facilities.

BACKGROUND:

• In Prince Edward Island, long-term care services are delivered in both publicly and privately owned facilities. There are presently 1,236 beds between nine (9) publicly owned (592 beds) and ten (10) privately owned (644 beds) in the province.
• The additional 54 beds have been committed by private operators and the license process will begin immediately and beds will be opened within 30 days of licenses being approved.
• It is projected that Prince Edward Island will require an additional 50-60 beds annually for the next 10 years.

Media contacts:
Samantha Hughes
Senior Communications Officer
Department of Health and Wellness
[email protected]

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