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Hospital merger derailed due to lack of funding

A proposed merger between the Scarborough Hospital and Rouge Valley Health System has been derailed because it couldn’t get enough funding for the high upfront costs.

The Scarborough board voted to abandon the planned merger, which would have cost an estimated $30 million, but Rouge Valley decided to keep the $3 million promised from the Ministry of Health and Long-Term Care last week and continue planning.

The Scarborough Hospital president Robert Biron said the board will reconsider if more money becomes available.

“The hospitals have gained tremendous support for the merger from our many stakeholders,” Biron said.

“The value proposition of the proposed merger is sound — it’s all about improving patient care and sustaining our local health care system for future generations.”