NHS Greater Glasgow and Clyde (NHSGGC) has today (Tuesday, February 19th) presented an outline business case for the delivery of two new hospitals and a new laboratory build on the site of the Southern General Hospital.
It is the plan of the Board to deliver a new 1109-bedded adult hospital and a new 240-bedded children’s hospital, together with a major laboratory development, on the Govan site by 2014.
Having already achieved conditional outline planning permission from Glasgow City Council, NHSGGC is now required to submit a case to the Scottish Government that demonstrates affordability and value for money to the taxpayer.
The outline business case recommends Traditional Procurement (fully publicly funded) as the Board’s preferred option after having carried out an assessment of a number of procurement models including Private Finance Initiative. This option brings in the capital costs of the project at £842 million.
The development of this brand new facility would see the end of acute activity on the Western Infirmary and Yorkhill sites together with the transfer of inpatient acute services from the Victoria. Creation of additional capacity at Glasgow Royal Infirmary will complete the Board’s plans, allowing the closure of Stobhill’s inpatient services by 2014.
By reducing from six adult inpatient acute emergency sites to three (Glasgow Royal Infirmary, Gartnavel and new South Glasgow Hospitals), the Board will realise efficiencies and better value to the public purse.
In addition to premises-related savings, there will also be workforce savings as a result of operating across fewer hospital sites. For instance, consultant and junior doctors’ rotas will become less onerous and therefore more cost-effective.
We also expect the move to three sites to lead to a modest reduction in the overall number of nursing posts … which will be managed in a planned way through natural turnover over the next six years.
With the Outline Business Case now submitted to Government, the Board now awaits the next stage of the process which sees the case being considered by the Scottish Government Cabinet prior to any development of full business case on the chosen model.
Tom Divers, Chief Executive, said: “This is an exciting time on the eve of the 60th anniversary of the NHS to be taking forwards plans to create a showpiece major hospital development in the heart of Glasgow. This Outline Business Case is a key milestone in realising that ambition.
“Getting to this stage in delivering this ambitious project is testament to our clinical teams, health planners and finance colleagues.”
Notes to Editors
The OBC examines both capital and revenue costs of the project and seeks to demonstrate how the new South Glasgow and Children’s Hospitals and new laboratory facility can be delivered on a revenue neutral basis within the context of the Board’s overall financial plan for the next 10 years.
In line with the arrangements for the submission of Outline Business Cases the document enters the public domain after consideration by the Scottish Government's Capital Investment Group.
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