Australian College of Health Services Executives ACHSE

1

Australian College of Health Services Executives
(ACHSE) Understanding Important Influences on
Hospital Designs Building for a Responsive
Future Topic Where are Governments in Australia
Going with Major Health Capital Development and
What is Envisaged? 14 September 2007 Glenn
Monckton Sector Manager NSW Health

2
General Overview

• Current NSW Health spend 630 M p/a
• Since 1995 approx 4.6 B invested by NSW
• Government in Health Infrastructure
• Influences on Major Capital Development
• - Changes in the nature of construction
• - Advances in technology
• - Building cost escalation
• - Increased servicing and maintenance
  requirements

3

Australian College of Health Services Executives
(ACHSE) Understanding Important Influences on
Hospital Designs Building for a Responsive
Future Topic Where are Governments in Australia
Going with Major Health Capital Development and
What is Envisaged? 14 September 2007 Glenn
Monckton Sector Manager NSW Health

4

Presentation Overview General
Overview Infrastructure Challenges
Models for Public and Private Sector
Working Together
Directions for Future PPPs

5
Infrastructure Challenges

• National boom in Health Capital Development
• leading to issues of industry capacity and
  capability
• Number of large scale projects commencing
  construction in NSW
• Future asset maintenance and operating costs
  affordability

6
Models for Public and Private Sector Working
Together

• Health Infrastructure Partnerships Program Key
  Strategy
• - encourage private sector investment
  
• - achieve efficient and effective asset
  procurement
• Expansion of Health Infrastructure Partnerships
  Program
• is being evaluated
• Further streamlining of processes
• Further harnessing efficiencies and value for
  money

7
Models for Public and Private Sector Working
Together

• Health Infrastructure Partnerships Program
  includes the following PPPs
• Current
• - Long Bay Forensic and Prison Hospitals
• - Mater Redevelopment Newcastle
• Proponent Selection
• - Orange and Associated Health Services
• - Royal North Shore Hospital

8
Key Value Gains from PPPs

• Improved Risk Management.
• Reduced Whole of Life Costs.
• Improved Asset Utilisation.
• Improvements in Facility Planning.

9
Benefits from Further Development of HIP Program

• More certain market through progressive release
  of projects.
• Increased confidence by private sector to bid.
• Reduced transaction costs for both private and
  public sectors.
• Refinement of model documents and templates.
• Management and delivery capability building
  within the private sector and NSW Health.

10
Directions for Future PPPs

• Based on experiences from Mater and Long Bay
  PPPs
• Model Health Project Deed to be priced.
• Continuation of Engagement Strategy.
• Streamline Procurement Process.
• In terms of design
• What are givens and what are options for
  enhancement
• Functional Relationships fully established

11
QUESTIONS ?