New hospital construction to boost Ottawa’s GDP by $2 billion

Apr 14, 2022

Thousands of people will come to the new hospital every day for care, to visit their loved ones, and to work or learn.

By hiring local contractors, creating a vast new workforce, and facilitating patronage to local businesses, The Ottawa Hospital’s New Campus Development stands to dramatically boost Ottawa’s bottom line. According to a new report by Deloitte, the project will inject nearly $2 billion into the local economy.

The analysis measures the impact of direct spending on construction of the state-of-the-art new hospital, as well as the resulting ripple effects through the local economy, for example when construction companies use that initial investment to purchase supplies, or workers buy lunch at nearby restaurants.

In addition to the $1.92 billion boost to the local GDP, the project will contribute $1.24 billion to Ottawa’s labour income and will independently create or sustain the employment of about 4000 full time equivalent jobs each year.

In total, the economic output of the facility’s construction is estimated at $3.77 billion.

Beyond the hospital’s initial construction, the new facility will fuel Ottawa’s thriving health sciences sector and contribute to the local economy for years to come.

Growing Ottawa’s role as a health sciences research hub

With its expanded research capacity, the New Campus Development will grow the region’s reputation as a major site for discovery, innovation and commercialization, allowing the hospital to take on new research mandates and partnerships.

Research spaces at the new campus will be integrated into clinical areas, so that researchers can work closely with clinicians and conduct clinical trials. The new campus will also feature a stand-alone research tower on Carling Avenue. New facilities will include:

A world-class neuroscience institute, which will bring laboratory and clinical scientists together to develop new treatments for brain and neuromuscular diseases.
A digital health innovation hub, with the capacity for collaboration between researchers and industry partners.
Multi-use mobile collaboration rooms.

TOH is also exploring partnerships with government departments and agencies including Health Canada, Agriculture and Agri-Foods Canada, and the National Research Council. This collaboration would enhance Ottawa’s role and value as a national health sciences hub through research on food, nutrition and health.

Stimulating Ottawa’s Economy for years to come

During and after construction, the New Civic Campus will create benefits for businesses near the new hospital and throughout the region. Whether it’s a coffee on the way to work to a grocery run or dinner with a friend on the way home, the thousands of workers onsite daily are likely to patronize nearby restaurants and stores.

Nearby commercial areas like Preston St. are likely to see increased flow-through and foot traffic, and a corresponding increase in customers.

Deloitte’s report notes that “The New Civic Campus can be seen as an important infusion of customers and is of relevance in the context of the City’s economic recovery – in which service-related industries were significantly negatively impacted by lower levels of business.”

The new campus also creates opportunities for new and existing suppliers. Deloitte estimates that $20.2 million in new service contracts will be put in place as part of a retail strategy that is focused on supporting patients, visitors and staff members. The potential for long-term, multi-year contracts would foster stability for businesses like food vendors, onsite daycare, and recreational facilities.