July 12, 1999
To:Policy and Finance Committee
From:Commissioner, Community and Neighbourhood Services
Subject:Submission Deadline for the Request for Proposals for New Long Term Care Beds
Purpose:
The purpose of this report is to provide an update on the status of the Department's request to the Ministry of Health for an
extension to the submission deadline with respect to the current Request for Proposals (RFP) for new long term care beds.
Funding Sources/Financial Implications/Impact Statement:
There are no financial implications related to this report.
Recommendation:
It is recommended that this report be received by the Policy and Finance Committee for information purposes.
Council Reference/Background/History:
At its meeting on June 24, 1999, the Policy and Finance Committee had before it a communication from the City Clerk
respecting recommendations from the Community Services Committee (June17, 1999) that:
(1)City Council be requested to direct the Commissioner of Community and Neighbourhood Services to respond to the
Province of Ontario's Request for Proposals for additional long term care beds for a new City Home for the Aged prior to
the July 30, 1999 deadline; and
(2)City Council be requested to endorse maintaining the same level of operating service for both the existing and
expanding Homes for the Aged portfolio.
The Policy and Finance Committee deferred consideration of the communication from the City Clerk and the report (June
22, 1999) from the Commissioner of Community and Neighbourhood Services. The Committee requested that the
Commissioner of Community and Neighbourhood Services ask the Minister of Health to extend the Request for Proposals
deadline in order to afford Council the time needed for a thorough review of the options available to the City of Toronto. In
addition, the Committee requested that the Commissioner of Community and Neighbourhood Services, in consultation
with the Chief Financial Officer and Treasurer, submit a report to the July 20, 1999 meeting of the Policy and Finance
Committee, exploring further the options available to City Council with respect to expanding the Homes for the Aged
portfolio.
The report was to consider how the City's exposure could be reduced; to advise on a policy of projecting what the City's
future role should be respecting long term care; to indicate what the City's participation within the ratio of a balanced
service delivery system should be; what number of beds should be provided in the future; and, on whether there is an
opportunity to submit a cooperative bid with the private sector.
Comments:
On April 29, 1998, Ontario's Minister of Health announced that the Province would invest $1.2billion annually to expand
and improve long term care services across Ontario. This infusion of redirected monies from hospital services adds 20,000
new beds into homes for the aged and nursing homes. Twenty thousand beds are said to be the equivalent of adding 175
new facilities into the long term care system.
On May 1, 1998, the Minister of Health released the allocated figures for facility and community reinvestments. For
facility-based care, 5,837 new beds (out of the 20,000 provincial figure) were allocated for the Toronto region over a six- to
eight-year period. This amounts to a $190.9 million reinvestment. An initial call for requests for proposals for 2,200 beds
for Toronto (6,700 beds across Ontario) was issued in 1998.
The second phase of the Ontario government's six-year expansion plan released this spring will increase the long term care
system by a further 5,790 beds throughout various regions across the province, including the City of Toronto, where there
are 744 beds available. A further 2,893 beds will be offered within Toronto in future phases of the expansion plan.
Proposals during this phase must be submitted by 12:00 noon local (Toronto) time on August 4, 1999. The original
submission deadline was 12:00 noon on July 30, 1999.
City of Toronto staff submitted a formal request to the Minister of Health asking that the RFP submission deadline for long
term care beds be extended by one month. The Ministry of Health responded by communicating that no such extension
would be granted. A subsequent communication was issued by the Ministry of Health shortly thereafter, advising that due
to unanticipated difficulties experienced by the company responsible for transmitting facsimile copies of an Addendum to
the RFP, the province had revised their timetable to grant an extension to the submission deadline for proposals to 12:00
noon local (Toronto) time on August 4, 1999.
The new submission deadline extends the timeframe for completing the RFP by only three business days, which does not
allow staff sufficient time to prepare and submit a proposal to the Ministry of Health should City Council decide to proceed
with a bid following its review of the options. It is acknowledged that there will be additional opportunities for the City of
Toronto to respond to Requests for Proposals during future phases of the province's multi-year long term care expansion
plan. It is staff's belief, however, that the next RFP will not be released until at least 2001.
Conclusion:
The Ministry of Health did not approve the City of Toronto's request for an extension to the RFP submission deadline, thus
making it impossible for Council to consider its options and provide staff with the necessary direction in time for the City
to prepare and submit a proposal for new beds.
Staff will proceed with developing an option paper as directed by the Policy and Finance Committee for consideration at
future meeting. The Advisory Committee on Homes for the Aged will be given an opportunity to provide input into the
responding to the questions raised by the Policy and Finance Committee, especially concerning what the City's future role
should be respecting long term care.
Contact Name:
Reg Paul, Director, Financial and Administrative Services
Tel: 392-8896; Fax: 392-4180; E-mail: reg_paul@toronto.ca
General Manager, Homes for the Aged Division
Commissioner, Community and Neighbourhood Services
