Ontario introduces funding model for care home building

Key Takeaways:

• Ontario is replacing its fixed cost-per-bed funding model with a new percentage-based Capital Funding Program that will cover up to 85 per cent of eligible construction costs, with funding levels tailored to regional conditions.
• The program is intended to speed up long-term care construction across the province, particularly in areas such as the Greater Toronto and Hamilton Area and northern Ontario that face higher costs and labour shortages.
• The first major project under the program is the redevelopment of Maxville Manor in Eastern Ontario, which will expand to 160 beds with modern amenities and is expected to open in 2027.

The Whole Story:

The Ontario government is introducing a new funding program aimed at building long-term care homes more quickly in regions facing labour shortages, high land costs and supply chain challenges.

The Capital Funding Program (CFP) replaces the province’s cost-per-bed funding model with a flexible system that will cover up to 85% of eligible construction costs, depending on location. Not-for-profit operators will receive money earlier in the process, while hospitals and Indigenous operators will be able to access their entire allocation during construction.

Long-Term Care Minister Natalia Kusendova-Bashta said the shift is designed to address regional cost pressures and help Ontario meet its goal of adding 58,000 new and upgraded long-term care beds.

“As Ontario ages, we need to build long-term care homes faster, smarter and in the places that need them most,” she said.

The program’s rollout coincides with the redevelopment of Maxville Manor, a long-term care home in Eastern Ontario that is renovating 122 existing beds and adding 38 new ones. The $160-bed facility will include new amenities such as a dining room, spa, multipurpose room and outdoor spaces, and is expected to open to residents in 2027.

As of July, the province said 148 projects representing more than 24,000 new and redeveloped beds are either completed, under construction or approved. The government added that nearly four hours of direct daily care per resident is now being provided across Ontario, a benchmark it set under its Fixing Long-Term Care Act, 2021.

MPP Stéphane Sarrazin, whose Glengarry—Prescott—Russell riding includes Maxville Manor, called the project “an important investment in the health and well-being of our seniors,” while local officials described it as critical to meeting growing demand for long-term care in the region.