A group of Muskoka residents are claiming that Muskoka Algonquin Healthcare (MAHC) used a flawed process in selecting the site for the future South Muskoka Hospital.
In December 2023, MAHC selected 300 Pine Street in Bracebridge, Ont., as the site of a future hospital. In May 2025, the Town of Bracebridge, which owned the site, transferred it to MAHC as part of a $10 million contribution towards the hospital.
“The public lacks clarity about the site, key reports are withheld, and legitimate alternatives have been dismissed outright,” said the Save South Muskoka Hospital Committee, in a statement. “MAHC has failed to engage the community, provide for informed consultation, and has controlled the process at the expense of public trust and taxpayer concern.”
The proposed South Muskoka Hospital is part of a $1 billion healthcare redevelopment in Muskoka that will include two new hospitals, one in Huntsville and one in Bracebridge. The selected site for the Bracebridge hospital, 300 Pine Street, includes 45 acres of land off Hwy. 11 but is partially occupied by a sand and gravel pit.
The Save South Muskoka Hospital Committee, which is a non-profit created in response to MAHC’s proposed hospital redevelopment plans, argues that the sand and gravel pit makes the site challenging to build on, and that the pit is being proposed as a possible landfill site. It also argues that the selected site is not large enough for current demand or future expansion.
Since selecting the site, MAHC has already expanded its original plans, increasing the number of proposed acute beds at the South Muskoka Hospital from 10 to 46. This decision was made in response to pressure from the local community.
The Save South Muskoka Hospital Committee has called on the province to conduct an independent investigation into the site selection process.
MAHC, however, rebuts the group’s claims. Bobbie Clark, MAHC’s director of communications, says that the site was selected “as the most sustainable long-term option after careful consideration of technical analysis, cost, and community input. It provides more than 45 acres—exceeding the rough guideline for 40 acres—and comfortably accommodates the proposed hospital with capacity for future expansion. Technical assessments confirmed the site’s suitability for grading, access roads, utility connections, and environmental readiness without the need for major remediation. Pine Street was also the Town of Bracebridge’s preferred site, aligning with municipal planning and ensuring strong community partnership and accountability.”
MAHC conducted 12 public engagement sessions to receive community feedback prior to selecting the site. Although, the Bracebridge Town Council has been critical of MAHC’s community engagement, specifically the healthcare service’s board, which council members have argued doesn’t represent or understand the concerns of the community.
In response, MAHC officials outlined strategies during a September 2 Bracebridge council meeting to better connect with the community, including starting a podcast and introducing various committees.
As for the sand and gravel pit, Clark says it will not require any major excavation or remediation, and MAHC does not plan to use the pit as a landfill site. However, it could become a clean fill site. Clean fill sites accept uncontaminated, organic construction materials, including soil, sand, rocks, concrete, and bricks.
She also says that while the site has ample space for future expansion, there is the possibility that MAHC may eventually look at purchasing surrounding land to develop a future campus of care.
“We recognize this project represents a significant local investment, and we are committed to ensuring taxpayer contributions are used responsibly and with accountability to our community every step of the way,” she says.
Currently, MAHC is waiting on Ontario’s Ministry of Health to approve its Stage 1.3 Proposal. The healthcare provider submitted the proposal, which includes detailed project plans, updated cost estimates, community input, and sustainability initiatives, in November of 2024.
According to MAHC’s timeline, construction on the two hospitals will begin in 2029.
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