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, 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.

"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, but has not yet received a statement. 

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."

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.