A new hospital project for federal inmates in New Brunswick is now projected to cost $1.3 billion, a significant increase from the initial estimate of $400 million disclosed in 2021. The funding for this initiative was greenlit by the Treasury Board in December 2024; however, the revised budget has not been publicly announced as the Canadian government is presently engaged in negotiations with construction companies.
Insiders familiar with the situation have revealed that the project successfully passed through Ottawa’s budget examination preceding the November 4 federal budget announcement, despite mounting pressures to curtail spending within Correctional Service Canada.
Set to accommodate 155 beds, the upcoming facility will provide comprehensive mental and physical healthcare services in both English and French to incarcerated men and women under federal jurisdiction. Situated in a newly constructed building, this center will supplant an outdated establishment within Dorchester Penitentiary, which currently operates at only one-third capacity.
The hospital will be established in Beauséjour riding, represented by Dominic LeBlanc, the federal minister overseeing Canada-U.S. trade affairs. In a previous statement, LeBlanc acknowledged that the project’s budget would exceed the initial projections, although he refrained from specifying the exact amount.
Comparing the anticipated costs to the Confederation Bridge linking New Brunswick and Prince Edward Island, inaugurated in 1997, LeBlanc emphasized that the financial scope of the hospital project aligns with such large-scale infrastructure endeavors.
Confidential federal sources have disclosed that the $1.3 billion allocated for the hospital’s construction represents a 30% increase over the Confederation Bridge’s $1 billion contract. Correctional Service Canada aims to finalize the project by 2032.
During his tenure as Minister of Public Safety in 2023, LeBlanc was briefed on the escalating budget requirements for the hospital project, as per documents released under the Access to Information Act. Although financial specifics were redacted, the records indicate that LeBlanc advocated for the project’s full implementation despite the rising costs.
Planned to cater to the complex clinical and mental health needs of federal offenders nationwide, the proposed hospital facility in New Brunswick is designed to improve the overall well-being of inmates under federal care.
Situated within the Dorchester Penitentiary grounds in southeastern New Brunswick, the modern hospital will replace the existing Shepody Healing Centre, which currently accommodates 53 beds. Dr. Louis Thériault, a psychiatrist at the recovery center, has long voiced concerns about the inadequate and unsafe conditions within the current facilities, emphasizing the urgent need for infrastructural upgrades to ensure the safety and well-being of both inmates and staff members.
Established in 1880, Dorchester Penitentiary houses treatment centers that have been flagged for their substandard and cramped conditions, prompting calls for enhanced facilities to address the pressing healthcare needs of incarcerated individuals.
