By Jamie Rieger

The long-awaited expansion of the Medicine Hat Regional Hospital will be going ahead following last week's announcement by the Alberta government that the project is being included in Phase One of its health capital plan.

The province has agreed to provide approximately $200 million for the redevelopment that will include renovations to create additional ambulatory services, maternity services, improvements to the emergency department and operating rooms. The total amount includes, $43.5 million out of the 2010-13 plan. Construction is expected to begin in the summer of 2011 and will tentatively end sometime in 2013.

While the $200 million is significantly lower than initially projected, the cost of construction, including fuel and operating expenses has gone down, a trend being seen throughout the construction industry. When the project was first being proposed, interest rates, fuel costs, labour, and costs of supplies were running at unforeseen highs. Those figures have seen come down significantly.

"The number has come down, but nothing has been dropped from the project. There have been some engineering changes to make things more efficient, but the project is the same as it was," said Cypress/Medicine Hat MLA Len MItzel.

Phase One of the 2010-13 Capital Health Plan includes 22 facility projects in 15 communities and reflects more than $1.4 billion in provincial support. The totals include costs for planning, design, and construction. An additional $1 billion has been allocated for facility maintenance, transition initiatives, and technology and equipment purchases.

"We are focused on building the right facilities, in the right part of the province, that meet community health care needs now and into the future," said Ray Danyluk, Minister of Infrastructure. "We will deliver leading edge health care facilities that are highly functional and accessible, to support the delivery of top quality health care services in Alberta."