Wequedong Lodge in Thunder Bay says it's headed toward bankruptcy

A lodge that houses First Nations people from across northern Ontario who travel to Thunder Bay, Ont., for medical treatment is headed toward bankruptcy, according to its executive director.

Wequedong Lodge is a 110-bed facility that has been over capacity for years. It spends about $1 million per month on hotel rooms for those it can't accommodate, and at its peak, it served more than 500 clients in one day.

Meanwhile, it's been receiving complaints about long wait times for intake and rides, and phone calls left unanswered, "which are all a result of lack of capacity to serve the ever-growing number of clients," executive director Donna Kroocmo said in a written update to communities on Saturday.

The lodge is fully funded by Indigenous Services Canada (ISC), but Kroocmo says there's a lack of stable, secure funding. What's more is that the lodge itself is running out of room, which is why staff have been developing plans for a $45-million expansion. That project is no longer happening.

Due to an ongoing deficit, the lodge has halved its management staff down to eight from 16 and the remaining managers have had their wages cut by five per cent. This week, it's announced it will be cutting 22 front-line staff positions by the spring – nearly half its full-time staff.

The Wequedong Lodge in Thunder Bay, Ont., is funded by Indigenous Services Canada to provide accommodation and other services to members of remote First Nations who travel to the city for medical appointments. Due to financial pressures, the lodge has slashed its management staff in half and is cutting 22 front-line positions by the spring. (Sarah Law/CBC)

"We are what, two weeks away from Christmas? It's been absolutely horrible," Kroocmo told CBC News.

As of April 1, 2024, Indigenous Services Canada will provide services for clients that need to come to Thunder Bay for medical reasons. Once the lodge is at capacity, which will be capped at 155 clients, remaining clients will be looked after directly by the federal government.

"This is a needed service, everyone agrees — so fund it accordingly," Kroocmo said. "If you don't think the hotel is the answer, which I don't either – I agree with the government on that – then help us expand."

CBC News reached out to Indigenous Services Canada, as well as Minister of Indigenous Services Patty Hajdu, for comment. Hajdu's director of communications, Simon Ross, provided an emailed statement on Thursday.

"Indigenous Services Canada is working actively with Wequedong Lodge to ensure there is no interruption to services and to meet the ongoing needs of both the lodge and the people they support. This includes supporting them to find concrete solutions to the challenges they have raised as well as the development of a long-term fiscal plan to ensure people have the supports they need while receiving care," Ross said.

"ISC is providing approximately $16 million in funding to Wequedong Lodge in fiscal year 2023-24 to support boarding home services, commercial accommodations, and an NIHB (Non-Insured Health Benefits) navigator to assist clients with applications for services."

Matawa Chiefs Council empathizes with lodge

The Matawa Chiefs Council issued a statement Wednesday afternoon in response to Wequedong Lodge's decision to downsize.

"The disruption and uncertainty caused by this service reduction will add stress and anxiety to what is already a broken, difficult-to-navigate system, designed to save government funding at every opportunity," says the statement.

"This will inevitably result in our community members waiting hours at the airport, sometimes without food, for transportation to their accommodations. The transfer of health-care services back to the federal government will result in delays and missed appointments for clients travelling to Thunder Bay for chemotherapy, dialysis, surgery, and specialist appointments."

The statement calls for increased and stabilized funding from the federal government, more investments to improve health-care services within communities, and for the government to address delays with the NIHB program.

Lodge provides services hotels can't replicate

Tiffany Sky has worked at Wequedong Lodge for nearly nine years. As a receptionist, she's the first person people see when they walk through the doors. The lodge serves 53 First Nations in northern Ontario.

"It's sometimes frustrating for them, especially if it's their first time out. It's a culture shock for them because they come from small remote communities," Sky said.

"But as they keep coming out, they get to know us by name and then when they come in, they're like, 'Hi Tiffany, how are you?' So we make them feel more comfortable."

Tiffany Sky is a receptionist at the Wequedong Lodge in Thunder Bay, Ont. She says she cares deeply about the clients who stay there but is now worried about losing her job due to financial pressures the lodge is facing. (Sarah Law/CBC)

Getting to know the clients, especially those who stay at the lodge long-term, has been rewarding, she said. But now the fear of being laid off looms over her.

"A lot of us are just worried about our jobs; we love what we do," she said.

Kroocmo said the lodge needs to at least double the number of beds it has to keep up with demands. It gets a discounted rate for clients it sends to the Victoria Inn Hotel, where they're guaranteed 120 beds, but admits this system isn't sustainable.

"Every few months, we have to go back to Indigenous Services Canada begging to offset our deficit. Well, last year we had over a $300,000 deficit. It wasn't offset," Kroocmo said.

It's not just room costs the lodge has to worry about; there's also the costs of food and transportation, as well as translation, navigation and other cultural services.

"All of our staff are trained in suicide-risk prevention, all of them have first-aid, CPR. We've got cultural sensitivity training and just last year alone, I know for a fact that our security officer saved two lives," she said.

Kiiwetinoong MPP Sol Mamakwa posted publicly on social media about the cutbacks to the lodge on Monday.

"It is concerning for First Nations members in Kiiwetinoong that access the health system in Thunder Bay. There are a lot of travel and boarding issues as it is. But this is a marker of a bigger health system issue in our region," Mamakwa wrote on his Facebook page.

"I hope we can come together to provide a solution by April 1, 2024 as it is approaching fast. Reach out to your leaders so this is addressed ASAP."

SLFNHA considers expansion in Thunder Bay

Monica Hemeon says she wasn't surprised to hear about Wequedong Lodge's cutbacks, but is concerned about what this means for remote communities.

Hemeon, the chief administrative officer of the Sioux Lookout First Nations Health Authority (SLFNHA), says her organization works closely with the lodge and serves the same pool of clients. Those who are sent to Sioux Lookout for medical appointments are directed to one of SLFNHA's three hostels, and those sent to Thunder Bay are directed to Wequedong Lodge.

SLFNHA has recently received direction to look into opening an accommodation in Thunder Bay, Hemeon said.

Monica Hemeon is chief administrative officer of the Sioux Lookout First Nations Health Authority. She says the organization is considering expanding its presence in Thunder Bay, Ont., due to pressures facing the Wequedong Lodge. (Submitted by SLFNHA)

What that could look like remains uncertain; it's hard to say whether an existing building could be repurposed in the city or what the costs of a new facility might be.

"Discussions are definitely underway to strategize and to figure out what our viable solutions would be to prioritize the well-being of those that are requiring medical care in the city," Hemeon told CBC News in an interview Monday.

SLFNHA expects to meet with Indigenous Services Canada in the new year to discuss potential plans in Thunder Bay. In the meantime, it's meeting with chiefs to talk about what this means for community members, she said.

"I think some of the challenges that are going to be faced through the medical care system could extend through all areas of a client's health journey really, because they do want to be in a safe environment and have the services provided in a culturally-appropriate way as well."