The Ontario government has awarded a $174-million construction contract to Pomerleau Inc. to begin Phase One of the long-planned redevelopment of Stevenson Memorial Hospital, a project aimed at expanding capacity and modernizing care for patients in New Tecumseth and surrounding communities.
The contract award, announced Jan. 30 by the Ministry of Health, marks a significant milestone for the hospital expansion and reflects the province’s broader push to strengthen health-care infrastructure. The redevelopment is part of Ontario’s plan to invest nearly $60 billion in more than 50 major hospital projects over the next decade, an initiative intended to add capacity and improve access to care across the province.
“Our government is making historic investments to protect Ontario’s health-care system and connect more people to the care they need, where and when they need it,” said Sylvia Jones, Deputy Premier and Minister of Health. “By investing in the redevelopment of Stevenson Memorial Hospital, we are making it faster and easier for more people and their families to access world-class hospital care in their community, for generations to come.”
Phase One will see the construction of a new three-storey building that will more than double the hospital’s footprint to approximately 147,100 square feet. The expansion will increase inpatient bed capacity by about 20 per cent and significantly enhance clinical services. Once complete, the hospital will be able to accommodate up to 47 inpatient beds, up from the current 38.
The redevelopment also includes a new emergency department that will be triple the size of the existing facility, expanded diagnostic and surgical services, and a new birthing suite designed to meet the needs of growing families in the region. Construction is expected to be completed by late 2028.
For residents of New Tecumseth and nearby communities—including Adjala-Tosorontio, Essa, Innisfil and Canadian Forces Base Borden—the expansion is expected to reduce the need for travel to larger urban centres for hospital care, improving convenience and continuity of treatment.
Infrastructure planning and procurement for the project were overseen by Infrastructure Ontario, working in partnership with the hospital. Pomerleau Inc. was selected following an open, fair and competitive procurement process that began in August 2024, according to the province.
Todd McCarthy, Acting Minister of Infrastructure, said the project demonstrates the government’s commitment to long-term capital investment across Ontario. “Congratulations to the project partners on reaching this pivotal milestone in delivering a new and expanded Stevenson Memorial Hospital. Once complete, this modern facility will transform health care for families and residents in New Tecumseth and its surrounding communities. Thanks to Premier Ford’s leadership, our government is investing nearly $60 billion in health infrastructure across the province, as part of our more than $220 billion capital plan to support growing communities, keep workers on the job and protect Ontario.”
Local representatives also welcomed the announcement, noting its economic and social impact. Brian Saunderson, MPP for Simcoe—Grey, said the move from planning to construction is a turning point for the project. “Announcing a contractor moves this transformational project from planning to action. I know the community will be excited to see shovels in the ground and the start of construction on a new expanded and enhanced state-of-the-art Stevenson Memorial Hospital that will provide residents and families across our region with the health care they deserve for generations to come.”
Hospital leadership emphasized the long-term planning behind the redevelopment. “This is an exciting milestone in Stevenson Memorial Hospital’s journey towards building a new hospital facility. Many years of planning have brought us to this moment, and we look forward to continuing on our journey alongside Pomerleau Inc., the Ontario government and its agency Infrastructure Ontario to bring an expanded, modern hospital to New Tecumseth and surrounding communities,” said Carmine Stumpo, supervisor of Stevenson Memorial Hospital.
Beyond the Stevenson project, the province says it is investing $257 million in 2025–26 to support infrastructure upgrades and repairs at hospitals and community health-care facilities across Ontario, a 12.3 per cent increase from the previous year. Stevenson Memorial Hospital will also receive $434,000 through the Health Infrastructure Renewal Fund in 2025–26 to address critical infrastructure needs.
Together, provincial officials say, these investments are intended to support a connected, people-first health-care system while addressing the demands of Ontario’s growing population.
