NASSAU, BAHAMAS- The Davis administration is moving forward with a $268 million, 200-bed New Providence Hospital, a project government officials say is designed to ease chronic overcrowding at Princess Margaret Hospital while addressing spiralling healthcare costs that now exceed $300 million annually.
Health and Wellness Minister Dr. Michael Darville told Parliament that the facility—planned for a 50-acre elevated site in central New Providence—will include specialty maternal and child health services, modern diagnostic capability, and improved patient-to-staff flow intended to reduce operational inefficiencies that have long burdened the public health system.
The hospital will be financed primarily through a concessional loan from the Chinese EXIM Bank, covering about $195 million, or roughly 70 per cent of the project cost, at a 2 per cent interest rate over 20 years, including a five-year grace period. The remaining $73 million will be allocated for equipment, including CT and MRI systems, to be sourced separately.
Darville said the project responds to persistent capacity constraints at Princess Margaret Hospital, which was built in the late 1950s and now operates far beyond its original design limits. He noted that emergency departments at both PMH and Rand Memorial Hospital are routinely overcrowded, contributing to delays in care, higher labour costs, and rising pressure on medical staff.
“Our healthcare system carries legacy issues that are compounded by ageing infrastructure and financial challenges,” Darville said, adding that the annual health budget continues to rise without delivering the level of efficiency or outcomes required.
The new hospital will place a particular focus on maternal and child health, an area Darville said has shown troubling trends over the past 15 to 20 years despite increased spending. He argued that a purpose-built facility would allow for improved clinical outcomes and better use of specialised staff.
“This reality demonstrated the country’s need for a specialty hospital,” he said, pointing to regional examples where dedicated maternal and child hospitals significantly reduced infant and maternal mortality.
Construction will be carried out by China Railway Construction Company, under an agreement requiring a 50:50 ratio of Bahamian to foreign workers. Darville said compliance will be monitored on site by a recruitment and assessment team working with the Departments of Labour and Immigration, and that breaches of the labour arrangement will attract fines.
Beyond construction, Darville emphasised that staffing the facility sustainably remains a central concern. Since 2021, more than 500 healthcare workers have been added to the public system, with additional nurses—both retired Bahamians and international recruits—expected to join in the coming months.
“Manpower is central to the long-term success of this hospital project and to ensure we do not create a white elephant,” he said, noting global shortages of nurses and physicians.
Once services are transferred to the new hospital, Darville said space will be freed at Princess Margaret Hospital to allow for long-delayed renovations and expansion of medical and surgical services, improving efficiency across the wider public hospital network.
Construction is expected to take 30 to 36 months, followed by a three-year maintenance period, during which Bahamian maintenance teams will be integrated to support long-term operational sustainability.
