Ontario breaks ground on 174$M hospital expansion project

Key Takeaways:

• The Ontario government has started construction on a 174 million dollar redevelopment of Stevenson Memorial Hospital that will nearly double the facility size and increase inpatient bed capacity by 20%.
• Scheduled for completion by 2028, the project will feature a new emergency department triple its current size along with expanded diagnostic services and a new birthing suite.
• This expansion is part of a larger provincial initiative to invest nearly 60 billion dollars into over 50 hospital projects to add approximately 3,000 new beds across Ontario.

The Whole Stories:

The Ontario government has officially broken ground on the redevelopment of Stevenson Memorial Hospital, a $174 million project that will expand acute care capacity and nearly double the facility’s size to approximately 147,100 square feet by 2028.

The redevelopment will increase inpatient bed capacity by 20 per cent, from 38 to 47 beds, and include a new emergency department triple the size of the current one, expanded diagnostic and surgical services, and a new birthing suite. The project is part of the province’s broader plan to invest nearly $60 billion in more than 50 major hospital projects across Ontario over the next 10 years, which will deliver approximately 3,000 new hospital beds.

“With more inpatient beds, expanded diagnostic and surgical services and an emergency department triple the size of the current one, the new Stevenson Memorial Hospital will connect more patients and families across Simcoe to convenient, high-quality health care,” Premier Doug Ford said in a news release.

Pomerleau Inc., a Canadian construction company, was awarded the construction contract on Jan. 30, 2026, following a competitive procurement process that began in August 2024. The redevelopment is expected to create and support hundreds of good-paying jobs in the community.

Sylvia Jones, Deputy Premier and Minister of Health, said the investment demonstrates the government’s commitment to expanding health-care access. “This investment is another example of how we are investing in the health-care needs of communities, to deliver the highest standard of care for generations to come,” she said in the release.

The hospital currently serves the communities of Adjala-Tosorontio, Canadian Forces Base Borden, Essa, Innisfil and New Tecumseth, offering 38 inpatient beds and a range of outpatient services.

Brian Saunderson, MPP for Simcoe—Grey, said the groundbreaking reflects years of collaboration. “This announcement represents far more than the start of construction. It reflects years of dedication from hospital leadership, foundation supporters, municipal and provincial partners and the many donors and community members who believed in the future of Stevenson Memorial Hospital,” he said in the release.

In 2025-26, the Ontario government is investing $257 million in critical infrastructure upgrades and repairs at 126 hospitals and 66 community health-care facilities across the province, a 12.3 per cent increase from the previous year. Stevenson Memorial Hospital is receiving $434,000 through the Health Infrastructure Renewal Fund, including $205,000 in one-time funding as an Exceptional Circumstance Project Grant.