Province’s purchase of transitional care property was ‘highly unusual’: AG

Nova Scotia’s auditor general called the province’s purchase of a building for a transitional-care facility in Bedford “concerning” and “highly unusual.”

Kim Adair held a news conference Tuesday to release her investigation into the purchase of 21 Hogan Court, a property the province purchased for $34.5 million.

Adair found $81 million was spent on the project for untendered contracts that “were not in compliance with provincial procurement protocols.”  

After the initial purchase of the property, the province, “without detailed cost estimates,” also approved a budget of $15 million for renovations, Adair said.

The property was originally intended to be a hotel but wasn’t finished. In order to be converted into a health-care facility, the province had to widen hallways to accommodate gurneys, renovations that created more delays. The report stated design concerns led to delays and increases to the cost of construction and equipment totalling $17.4 million.

There is no end date for the construction. Adair said during her walk-through of the property in August, it was “far from finished.” The property was purchased in January 2023 with the intent to become an “income generating property.”

The facility was originally designed to have 80 beds. Now, the facility may only be able to accommodate 68 beds, Adair said.

Adair also noted work had begun on the property “long before” there was a signed contract and approvals from fire marshals were not issued until more than 10 months after the purchase date.

Adair said the property market assessment was inadequate. There was no property valuation or appraisal when the purchase was made.

In 2023-2024, the provincial health-care spending budget was $6.5 billion.