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Nova Scotia auditor critical of province’s $34.5 million purchase of unfinished hotel

Nova Scotia auditor general Kim Adair fields questions at a news conference in Halifax on Tuesday, Nov. 23, 2021. THE CANADIAN PRESS/Andrew Vaughan

Nova Scotia’s auditor general says the province did not exercise appropriate due diligence when it bought an unfinished hotel for $34.5 million last year in order to convert it into a health facility.

Kim Adair says the steps taken to acquire the Hogan Court property in Bedford, N.S., diminished its value for money because of an inadequate assessment of other potential locations.

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Adair is also critical of the purchasing deal, saying it reduced the government’s ability to minimize costs, while there was no assessment on the feasibility of converting the property.

Her report also finds the conversion of the building into a transitional-care facility has experienced delays, cost increases and revealed design limitations that have reduced its capacity to provide service.

The Hogan Court facility is expected to open later this year and will house patients who no longer need a hospital bed as well as people waiting for a long-term-care bed who can’t live at home.

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Adair acknowledges there are significant pressures on Nova Scotia’s health system, but she says such challenges should not promote “a culture where expediency takes precedence over appropriate due diligence.”

This report by The Canadian Press was first published Feb. 13, 2024.

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