November 2007 NSW Health Infrastructure A New Approach for Delivering the Major Projects Program

1. November 2007 NSW Health Infrastructure A New Approach for Delivering the Major Projects Program Robert Rust Chief Executive Health Infrastructure

2. 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

3. 2007/08 Allocations - Major Works in Progress

4. 2007/08 - Works in Planning

5. 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)

6. Health Infrastructure • Health Infrastructure Boardestablished 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. Questions