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

2. 1 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. 2 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

4. 3 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

5. 4 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. 5  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

7. 6 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. 7 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. 8 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. 9 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. 10 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. 11 Questions