Stevenson Memorial Hospital retains independence as provincial supervision ends

 

Posted November 12, 2026​

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Stevenson Memorial Hospital will remain an independently governed community hospital, reversing the original direction of a provincial investigation that recommended integration with a larger health-care institution.

The decision marks a significant turning point for the Alliston hospital, which has officially emerged from more than two years of provincial supervision and regained full governance authority through an order of the Lieutenant Governor in Council.

The hospital confirmed Nov. 6 that supervision had formally ended, returning responsibility for its governance to its Board of Directors.

 

"The end of supervision marks an important transition for Stevenson Memorial Hospital and the return of full governance authority to the Board of Directors," according to the announcement issued jointly by President and CEO Deepak Sharma and Board Chair Jeff French. "Throughout the period of supervision, our staff, physicians and volunteers have remained focused on providing safe, high-quality care to our patients and families. We are grateful for their continued commitment."

The development closes a period of extraordinary provincial intervention that began in February 2024, when the Ontario government appointed investigator Janice Skot to examine serious concerns involving the hospital's leadership, finances, workplace culture and patient care.

Skot's 77-page report, submitted June 28, 2024, identified 16 recommendations and concluded that the hospital's existing organizational structure was neither sustainable nor viable.

Her preferred solution was integration with a larger hospital, which she believed could provide the financial resources, clinical expertise and administrative support Stevenson lacked.

A directed strategic partnership with a larger hospital was identified as an alternative.

The province appointed Eric Hanna as supervisor on Sept. 26, 2024, giving him authority over the hospital's board and governance.

Hanna was replaced by Carmine Stumpo, former president and CEO of Orillia Soldiers' Memorial Hospital, effective June 9, 2025.

Stumpo ultimately took a different approach.

His January 2026 interim report revealed that integration discussions had stalled. Rather than continuing to pursue a merger or integration, he suspended those discussions and shifted the hospital's direction toward maintaining its independence.

The new strategy focused on rebuilding the hospital's leadership, establishing a new board, strengthening internal operations and developing regional partnerships to improve access to specialized health-care services.

Deepak Sharma was recruited as permanent president and CEO, taking over March 16, 2026. A new Board of Directors was subsequently announced Aug. 10.

The change in direction did not eliminate the financial and operational challenges identified in the original investigation.

Stumpo's report projected a $6.1-million deficit over three years, describing a structural financial problem that could not be resolved through efficiency improvements alone.

An independent benchmarking exercise found Stevenson was generally operating in the top quartile of efficiency among comparable hospitals.

The province provided additional base funding and one-time financial assistance in December 2025 to help stabilize operations through the end of the 2025-26 fiscal year.

There were also improvements in staffing and hospital operations.

The supervisor reported the hiring of 20 clinical externs, expanded respiratory therapy coverage to 24 hours a day, restoration of internal human resources functions and reduced reliance on agency staffing.

Agency staffing expenditures declined from $638,000 to $385,000 during the first two quarters compared with the same period the previous year.

However, obstetrical services continued to experience frequent redirects, primarily because of difficulties securing anaesthesia coverage. Surgical services also experienced redirects.

The hospital's emergency department remained fully staffed for scheduled physician shifts, although annual visits had declined from approximately 38,000 before the pandemic to a projected 31,000.

The hospital's November announcement did not disclose the details of the termination order or provide a final assessment of the 16 recommendations made in the original investigation.

It also did not outline the hospital's current financial position or identify which clinical and operational challenges remain outstanding.

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Stevenson Memorial Hospital is undergoing a major $174-million redevelopment (not total cost), involving construction of a new three-storey addition that will more than double the hospital's size to approximately 147,100 square feet.

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The Ontario government awarded the construction contract to Pomerleau Inc. in January 2026, with construction officially breaking ground on March 9, 2026. Completion is expected by late 2028.

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Major improvements include:

• Emergency Department: Three times the size of the existing department, with a separate entrance and enclosed ambulance bays.

• Inpatient beds: Increasing from 38 to 47, a 24 per cent increase, with all private single-occupancy rooms.

• Diagnostic imaging: Expanded facilities and the hospital's first MRI suite.

• Surgical services: Expanded operating facilities, including new operating rooms.

• Maternity: A new, modern birthing unit.

• Other services: Expanded laboratory, pharmacy and medical device reprocessing facilities.

• Infrastructure: Improved parking, landscaped green space and an elevated helipad.

 

The project is designed to address decades of population growth and increasing demand on a hospital originally built in 1964. Its emergency department was designed for approximately 7,000 annual visits but now handles nearly 35,000.

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Story aided with files from AI