Health authority pays $13.1M in deal to take over Extendicare homes

After a year of back-and-forth, the Saskatchewan Health Authority has finalized its deal with Extendicare, officially taking control of the company’s five long-term care homes in the province.

It was one year ago that the government announced it would take over the homes, with that announcement coming after a damning report from the ombudsman about the deadly COVID outbreak at the Parkside home in Regina and subsequent lack of co-operation in the company’s other homes.

As part of the deal, the health authority bought all five Extendicare properties in Saskatoon, Moose Jaw and Regina.

The cost was $13.1 million for all assets. The authority declined to provide a further breakdown of the costs.

“The SHA is satisfied that a fair price was negotiated for the assets, which include land and buildings, equipment, supplies, inventory and other assets utilized in current operations. The SHA conducted third party assessments for land appraisals and facility conditions to help inform a fair purchase price,” the health authority said in a statement.

The transition also involved moving about 1,300 workers over to the health authority.

The two sides finalized the agreement in September, and it took effect Sunday.