Superhospital public-private partnerships are costlier alternative: critics
Public-private partnership (PPP) — are supposed to guarantee that any cost overruns would be shouldered by the private partner and not taxpayers.
The PPP consortium which built the superhospital of the McGill University Health Centre (MUHC) claimed it was owed $360 million, on top of the $1.3 billion it was to be paid under contract. The government announced it reached an out-of-court settlement with the consortium, agreeing to pay it an extra $108 million.
That same day, Quebec declared an even bigger payout, $125 million, to settle a dispute with a different consortium that built the nearly $2-billion CHUM superhospital.
The French government in 2014 resigned itself to paying a large penalty to cancel its PPP contract for Centre Hospitalier Sud Francilien after realizing belatedly that it was too expensive.
The $939-million expansion of Sainte-Justine Hospital was not built as a public-private partnership, and instead the government assumed the full risk of all cost overruns. The Montreal Gazette has learned the cost overruns are no more than $9 million,
Read the full report at the Montreal Gazette
In Quebec, the Journal de Montréal reported that the consortium of the McGill Healthcare Infrastructure Group billed the MUHC $409 to replace a soap dispenser.
Read This is crazy – $ 409 to move a soap dispenser