Experience Sharing Seminar

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Experience Sharing Seminar on PPP
Duty Visit to Canada 19 - 28 June, 2006
Presented by Ms Lucia W Y Li Hospital
Authority 31 July 2006 (Monday)
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(No Transcript)
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William Osler Health Centre
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William Osler Health Centre (WOHC)
Background / Need

• Build a new hospital Brampton Civic Hospital
• Open in 2007
• Growth in population 30,000 per year
• Aging population
• Increase in young mothers in childbearing years
• Change socio-cultural mix
• Existing facilities experience severe capacity
  restriction
• In 2001, the Minister of Health recognized the
  need of a new hospital

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William Osler Health Centre (WOHC)
PPP / Financial Arrangement

• Healthcare Infrastructure Company of Canada
  (THICC) special purpose project company
  established by the sponsors, Carillion Canada Inc
  and Ellis Don Corporation
• Concession contract signed on 23 November 2004
  public-private-partnership(P3) model
• Hospital Community contribute 30 of total
  construction cost
• Province of Ontario contribute 70 of total
  construction cost

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William Osler Health Centre (WOHC)
PPP / Financial Arrangement

• Capital Cost CA550
• Period of P3 arrangement 3 years of
  construction plus 25 years of operation
• Scope of Work design, construction and
  commissioning of a 608-bed hospital

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William Osler Health Centre (WOHC)
PPP / Financial Arrangement

• Long-term performance based relationship for
  the provision of select support services

• Building and Maintenance Services
• Food Services
• House Keeping Services
• Material Management Logistical Services
• Portering Services
• Security Services
• Laundry Linen Services

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William Osler Health Centre (WOHC)
Value for Money

• Value for money benchmark prepared by the
  Government of Ontario

Value associated with traditional Ministry of
Health Long term Care
vs
Value of the project
Key Measures - Capital Cost of Construction -
Capital Cost of Life Cycle Renewals - Cost of
Provision of Services - Assessment the value of
risks Savings CA155 million
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William Osler Health Centre (WOHC)
Value for Money

• Other Benefits Include-
• Occupancy of the building will take place on time
• Value of the Assets maintained over the life of
• the Project Agreement

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Royal Ottawa Health Care Group
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Royal Ottawa Health Care Group
Background / Need

• Mandated by Government of Ontario and Health
  Services Restructuring Commission Champlain
  Health Districts Tertiary, Academic Mental
  Health Centre
• Old buildings, inappropriate for mental health
  care, and inefficient to operate
• Decision was made in December 2001 to build a new
  facility adjacent to the existing hospital

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Royal Ottawa Health Care Group
PPP / Financial Arrangement

• Capital Cost CA1.28 billion
• Period of P3 arrangement 28 years
• Public Sector Partner Royal Ottawa Health Care
  Group
• Private Sector Partner Brookfield LePage
  Johnson Controls
• P3 Structure finance, build, lease, operate
  facilities provide non clinical services, such
  as, food preparation, security and laundry
  services

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Royal Ottawa Health Care Group
Value for Money

• Risks transferred
• Full integration of life cycle costs
• Whole-of-life costing budgeting considered
• Opportunities for innovation
• Opportunities for revenue generation
  utilization of assets
• Alignment of payment with benefits
• Senior Management focus on health care

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Academic Ambulatory Care Centre
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Academic Ambulatory Care Centre (AACC)
Background / Need

• AACC built on Vancouver General Hospital existing
• site
• Consolidation of out-patients care services,
  medical
• education, physician offices, research,
  commercial/
• retail activities
• Enhancement in patient access
• Enhancement in medical students education
• New facility in excess of 300,000 square feet
• Scheduled to open in autumn of 2006

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Academic Ambulatory Care Centre (AACC)
PPP / Financial Arrangement

• Capital Cost CA355 million
• Period of P3 arrangement 32 years
• Public Sector Partner Ministry of Health,
  Vancouver Coastal Health Authority, Faculty of
  Medicine in University of British Columbia
• Private Sector Partner Access Health Vancouver
• Private Sector Partner responsible for design,
  financing, construction and facility management

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Academic Ambulatory Care Centre (AACC)
Value for Money

• Saving of CA17 million
• Vancouver Coastal Health Authority pays after
  construction is completed
• Performance based payment reduction in payment
  if contract standards are not met

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Abbotsford Regional Hospital and Cancer Centre
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Abbotsford Regional Hospital and Cancer Centre
Background / Need

• 300 beds facility replacement for the aging MSA
  Acute Care Hospital in Abbotsford
• Approximately 60,000 sq. metre 3 times the size
  of the existing MSA Hospital
• Services provided including MRI services, general
  surgery, nuclear medicine, renal dialysis
  program, specialized obstetric and nursery care
  pediatric services
• Identified in 1986 the need for a new hospital
• MSA Hospital last renovated in 1980
• Population growth 2.5 times since 1980

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Abbotsford Regional Hospital and Cancer Centre
PPP / Financial Arrangement

• Construction Period 2004 to 2008
• Private Sector Partner
• - Access Health Abbotsford
• Public Sector Partner
• - Province of British Columbia
• Period of P3 arrangement 30 years
• P3 Structure private sector will finance,
  design, build, maintain operate facility
  services
• Clinical services will be provided within the
  universal publicly funded healthcare system

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Abbotsford Regional Hospital and Cancer Centre
Value for Money

• Performance-based payment to private sector less
  than the traditional public sector funding
  CA39 million savings
• Transferring risks
• Effective risk management through integration of
  facility design, construction, maintenance
  operation
• Payment to private sector after construction is
  completed
• No changes to scope, schedule or budget

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Conclusions

• New and viable option for procurement of
  healthcare infrastructure and its operation
• The organizations ability or responsibility as a
  publicly administered body is not compromise
• Risks transfer
• Better integrates the creative intelligence
• Deliver a service on time, within budget, more
  efficiently and effectively
• More viable options to narrow public health gap
  without compromising national values

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Thank You