November 2007

NSW Health Infrastructure

A New Approach for Delivering the Major

Projects ProgramRobert Rust

Chief Executive Health Infrastructure

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Health Infrastructure – A New Approach

Overview of Health Capital Works Delivery

A New Approach

– Establishment of Health Infrastructure

– Organisational Delivery Structure

– Project Delivery Structure

– Current Progress

– Universal project objectives

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Auburn Health Services Redevelopment $45.2M

Bathurst Hospital Redevelopment $32.6M

Central Coast Access Plan (Gosford & Wyong) $12.3M

Central Sydney Area Resource Transition Program $23.0M

Liverpool Hospital Redevelopment (Stage 2) $22.5M

Nepean Hospital Allied Health Relocation $3.9M

Newcastle Strategy (JHH, Belmont, NCHC, Mater) $24.3M

Orange Hospital Redevelopment $12.2M

Queanbeyan Hospital Redevelopment $17.6M Redfern/Waterloo Community Health $3.6M Royal North Shore Hospital Redevelopment $37.3M Tweed Heads Hospital Clinical Education & Research $3.0M Western Sydney Strategy $18.4M

2007/08 Allocations - Major Works in Progress

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2007/08 - Works in Planning

Forward Asset Acquisition Program (AAP) Griffith Non-Acute Mental Health

Hornsby Hospital Adult Acute Unit

Hornsby Hospital Child & Adolescent Unit

POW Hospital PECC & PICU

Rural Hospitals & Health Services (Phase 4)

Bega Valley Health Service

Lachlan Valley Health Service (Forbes/Parkes)

Nepean Hospital Redevelopment (Stage 3)

Tamworth Hospital Redevelopment

Wagga Wagga Hospital Redevelopment

Narrabri Hospital Redevelopment

Northern Beaches Hospital

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Key Issues

Considerable pressure on the Asset Acquisition Program

– Number of large scale projects commencing construction resulting in significant cashflow requirements

– Building Cost Escalation

– Nationwide boom in Health capital development leading to issues with industry capacity and capability (eg Margorie Jackson-Nelson Hospital PPP, Adelaide - $1.7 billion)

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Health Infrastructure Board established 1 July 2007

Responsible for management of Health Infrastructure, and has absorbed former Major Projects Office

Objective is to develop:

- An improved asset management approach

- Better planning and project delivery

- A single interface with contractors on behalf of Health

Health Infrastructure

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Establishment of Health Infrastructure

Focus will be:

Establishing delivery relationship with Area clients and private sector project delivery industry

Planning and delivery management for major projects over $10m

Budget holder for major projects

Management of health facility planning standards and tools

Compliance and performance reporting on project delivery

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Organisational Delivery Structure

New Roles & Accountabilities – a partnership model– Health Infrastructure: centre of excellence and expertise on

capital works delivery

– Area Health Service: service accountabilities, planning input and site management

– DOH Asset & Contract Services: strategic asset management, reporting, oversight of capital program

Support Groups

– Statewide Services Development Branch (DOH)

– NSW Treasury

– Department of Commerce

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Project Delivery Structure

Contract methods– PPP’s

– Design & Construct (and Maintain)

– Managing Contractor

– Partnership Contracts

Contractual parties – Health Administration Corporation as the Principal

Performance Management – Strengthened role in respect of consultants and contractors

Relationships – strengthened role with client areas and private sector

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Current Progress

Currently Underway: Forensic Hospital Long Bay & Mater Newcastle

Proponent Selection: RNSH & Bathurst/Orange

Detailed Investigation: Wagga, Bega & Northern Beaches

The NSW Government will be spending more than $3 billion over the next 5 years, building and refurbishing public hospital facilities

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Universal Project Objectives

New models of service delivery that encourage more efficient work practices, and impact positively on human resource utilisation

New technologies that increase the quality of care

Cost efficiencies through design including consideration of whole of life costs when selecting plant and equipment

Future flexibility / adaptability and a ‘future-proofed’ new facilities

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Questions