Cranbrook Hospital Expansion Costs Surge, Sparking Dispute Over Who Pays

A major hospital expansion in Cranbrook has become the centre of a growing dispute between local officials and the provincial government after construction costs rose significantly, increasing the portion that must be covered by local taxpayers.

The expansion project at East Kootenay Regional Hospital was initially estimated at about $59 million when it was announced in early 2025. Updated figures now place the cost at more than $76 million, an increase of roughly $17 million.

Under British Columbia’s health infrastructure funding model, regional hospital districts contribute approximately 40 per cent of construction costs, with the remainder funded by the provincial government.

That means rising construction costs are also increasing the amount local taxpayers must pay through property taxes.

Local officials criticize province

David Wilks, chair of the Kootenay East Regional Hospital District, said the situation has left local leaders frustrated.

Wilks said the hospital district recently approved an additional $7.1 million contribution to keep the project moving forward.

According to the district, the increase will likely add about $30 per year to the average residential property tax bill for the next five years.

Wilks argued that the district had little choice but to approve the funding increase.

“If we didn’t bring the money forward, the project could stall,” he said.

Province seeks clarification

Bowinn Ma said she was surprised by the hospital district’s claim that additional local funding had been requested and said the province would be seeking clarification about the rising costs.

Officials with Interior Health said construction costs across the region have been affected by supply chain challenges and labour shortages.

“The construction environment today is very different from when the original planning was completed,” an Interior Health official said.

Project timelines were also affected by discussions about potentially adding a third floor to the building.

Additional space under consideration

The hospital district hopes to include a third floor in the expansion, arguing the additional space is necessary to address increasing demand for health services in the region.

Wilks said the hospital frequently operates at more than 100 per cent capacity, creating pressure on staff and facilities.

“The hospital is bursting at the seams,” he said.

However, Ma said the third floor was not included in the original project approved by the province.

She noted that any expansion beyond the approved two-storey plan would be the responsibility of the hospital district to fund.

Improving access to care

Despite the dispute over funding, both local officials and the province agree on the need for expanded health services in the East Kootenay region.

The project will expand oncology and renal treatment capacity, allowing more patients to receive care closer to home rather than travelling long distances.

Wilks said some residents currently travel up to nine hours to access specialized cancer treatment outside the region.

He warned that travel costs and logistical challenges can discourage patients from seeking care.

Part of broader regional investments

The Cranbrook project is one of several health infrastructure upgrades planned across the Kootenays to support a growing and aging population.

Other projects include upgrades at hospitals in Trail and Nelson, as well as plans for a permanent MRI suite to serve patients throughout the region.

Construction on the Cranbrook expansion is already underway, with the upgraded facility expected to open in 2029.

Despite his criticism of the funding model, Wilks said the community ultimately needs the expansion completed.

“At the end of the day,” he said, “we just need the hospital built.”