Vancouver OKs Landmark VGH+ Tower, Pioneering New Healthcare Model

VANCOUVER, BC – January 16, 2026 – Vancouver City Council has greenlit a transformational healthcare project that will reshape the city's skyline and set a new national precedent for funding critical medical infrastructure. In a unanimous decision, the council approved zoning for the VGH+ redevelopment, a multi-phase initiative led by the VGH & UBC Hospital Foundation that will erect a 26-storey tower directly across from Vancouver General Hospital.

The project at 900 and 990 West 12th Avenue is a direct response to British Columbia's mounting healthcare pressures. Upon completion, it promises to deliver much-needed long-term care capacity, state-of-the-art clinical space, and a central hub for medical teams currently scattered across the city.

A Prescription for a Strained System

The approval comes at a critical time for healthcare in the province. British Columbia is grappling with a severe shortage of long-term care beds, with a deficit exceeding 2,000 beds as of mid-2025. The situation is particularly acute in Vancouver, where a current shortfall of over 300 subsidized long-term care beds is projected to balloon to 1,500 by 2035. This capacity crisis has had a cascading effect, with the waitlist for long-term care across B.C. soaring by 200% in the last decade.

This bottleneck contributes directly to overcrowding in acute-care hospitals. For over a decade, B.C. hospitals have consistently operated beyond their funded capacity, with some facilities running more than 20% over their limit. This means patients often remain in hospital beds not because they require acute care, but because there is nowhere else for them to go. The VGH+ project's first phase directly targets this issue by creating 280 state-of-the-art long-term care beds, a significant step toward easing the strain on the system and ensuring seniors receive appropriate care in a modern, purpose-built environment.

Beyond long-term care, the new tower will house 156,318 square feet of clinical space dedicated to vital services including transplant clinics, hematology, surgical oncology, women's health, and cardiac innovation. This modernization and consolidation of outpatient diagnostic and clinical services aims to improve patient flow and access to specialized care, reducing the pressure on overburdened emergency departments like the one at VGH.

Beyond Public Coffers: A New Philanthropic Blueprint

What makes the VGH+ project a national benchmark is not just its scale, but its innovative funding mechanism. The entire initiative is driven by the VGH & UBC Hospital Foundation through what it calls a "circular philanthropic model." This represents the largest investment of its kind in Canadian healthcare infrastructure, charting a new path for developing essential public assets without relying solely on government capital budgets.

The process began in 2022 when the Foundation made a $100 million investment to acquire the 1.4-acre property. Rather than transferring ownership, the Foundation will retain the asset and enter into a long-term lease agreement with Vancouver Coastal Health (VCH). The revenue generated from this lease will not be treated as profit but will be funneled back into the Foundation's coffers, creating a self-sustaining "virtuous cycle of investment."

"This is VGH+ in action," said Angela Chapman, President and CEO of VGH & UBC Hospital Foundation, in a statement. "We're taking bold, practical action to strengthen public health care — accelerating solutions that expand access, modernize care and create lasting impact to patients and their families. By investing in and owning this site, we've built a circular philanthropic model that keeps giving — fueling world-class care, groundbreaking research and future cures for generations."

This model allows for accelerated delivery, moving the project forward faster than traditional public funding streams might allow. While major philanthropic gifts to Canadian hospitals are not new, this ownership and reinvestment strategy represents a significant evolution, ensuring that donor generosity delivers a recurring, long-term impact on the healthcare system.

Reshaping the City's Health Corridor

The VGH+ project is also a major piece of urban planning, set to dramatically alter the Fairview neighbourhood and solidify the area as a world-class health precinct. The zoning approval allows for a substantial increase in density, with the site's Floor Space Ratio (FSR) increasing from approximately 2.0 to 14.20. The first 26-storey tower will stand 100.3 metres (329 feet) tall, with a future 28-storey tower planned to reach 107.6 metres (353 feet).

This vertical expansion aligns with the city's broader Broadway Plan, which encourages high-density development along the new subway line to create a vibrant, mixed-use corridor. The project will consolidate numerous Vancouver Coastal Health programs and medical teams currently operating out of multiple leased locations, creating efficiencies and fostering greater collaboration among healthcare professionals.

Mayor Ken Sim lauded the project's approval, highlighting its dual benefit for healthcare and urban development. "This VGH & UBC Foundation project is a major investment in the health and well-being of people living in Vancouver and the province," said Mayor Sim. "By approving this project, the City is supporting innovative, forward-looking solutions that expand seniors' care, modernize health care infrastructure and strengthen essential services. It's a great example of how the Foundation is delivering lasting benefits for our community."

In addition to the medical facilities, the complete redevelopment will include a 25-space childcare facility, public open space, and street-level retail, integrating the massive health complex into the surrounding community.

The Road Ahead: From Blueprint to Reality

With zoning secured, the VGH & UBC Hospital Foundation will now move into the next stages of detailed planning and development. Construction on the first phase, the 26-storey west building, is slated to begin in 2027 with an estimated completion date of 2031 and a projected cost of around $400 million.

The project does involve the redevelopment of a site that currently houses the Windermere Care Centre and a three-storey rental apartment building. The Foundation has noted that a tenant relocation process is underway for residents of the apartment building, as the new development will not include market residential suites.

As the project advances, it will be watched closely not only by Vancouverites eager for improved healthcare access but by policymakers and philanthropists across Canada. The VGH+ initiative stands as a bold experiment in partnership, urban integration, and financial innovation, offering a potential blueprint for how communities can tackle the monumental challenge of building the healthcare infrastructure of the future.