The government of B.C. is proceeding with the business case for the first phase in the redevelopment of Royal Columbian Hospital.

"A critical step forward has been taken as the government remains committed to the redevelopment of Royal Columbian Hospital," said Health Minister Margaret MacDiarmid. "Hospital redevelopment will benefit patients and families as well as the hundreds of health-care professionals who provide care."

The full redevelopment is expected to include additional beds, a larger emergency department, a new surgical suite and consolidation of critical-care beds. As well, there will be renovations and upgrades to existing spaces. The first phase of redevelopment will replace the Sherbrooke Centre with a new mental health building to meet current standards of care.

"I'd like to thank the provincial government for their commitment to the redevelopment of Royal Columbian Hospital. This hospital is one of the busiest hospitals in British Columbia. Approval to proceed with planning is very exciting news, as it ensures this site will continue to accommodate new technologies, best practices and the changing health needs of the communities we serve, and the province of British Columbia," said Fraser Health board chair David Mitchell.

Final scope, cost, and schedule will be determined as part of the business-case planning, which is expected to be complete over 2013-14. Following approval of the business case, procurement for construction of the first phase of the project will commence.

Royal Columbian Hospital is a leading trauma, cardiac, neurosciences and neonatal intensive care unit centre. Fraser Health is the largest health authority in British Columbia, serving 35 per cent of the province's population.

Since 2001-02, approximately $8 billion has been spent on health-sector capital projects in British Columbia. Over the next three years, British Columbia will benefit from investments, such as new health-care facilities, as part of a $2.3-billion health sector capital plan.