DunedinHospitalRedevelopment:Stage1

ProgressReport

Author / KieranReilly
ReportDate / 19August2016
DocumentLocation / LotusNotesCapitalandOperating/CapitalProject–Dunedin/KeyDocuments
ReportNumber / 7

SignOff

ThisdocumentisbeingsubmittedtotheSouthernPartnershipGroupviathefollowinggroup(s)forreview:
ProjectSponsors
CaroleHeatly,SDHBCEO
MhairiMcHugh,ManagerCapitalandOperating,MoH / SouthernSteeringGroup19August2016

1)ProjectObjective

The mainobjective forthenextyearistoprepare alongandshortlistofoptionsaspartofthe IndicativeBusinessCaseandarecommendedpreferredwayforwardtotakeintothe Detailed BusinessCase

2)CurrentProgress

a)Projectobjectives

Withinscope? / Yes
Ontime? / Yes / SomereplanningofconsultationandsignoffprocessesfortheDetailedServicesPlan(II)hasbeenundertakenwiththeclinicalgovernancegroupyettocommence.Masterplanningwiththenewcontractorsisstilltobecompleted.
Onbudget? / Yes
Anysignificantrisks? / Yes. / Referriskssection

b)Achievementsincelastreport

Themain achievementsbetween 13July2016and19 July2016are:

i)TheSouthernPartnership Group(SPG)ChairmetwithPeterCrampton,ProViceChancellor,UniversityofOtagoon 12Augustandteleconferencedwith DaveCull,MayorofDunedin on 16 August.

ii)Sapere andSouthern DHB have completedsixpatientjourneyworkshopsthatwillunderpin theworkontheDetailed ServicesPlan (II).

iii)TheStrategicAssessmentdocumentwas considered bythe CapitalInvestmentCommitteeon 28July2016.

iv)AftertheawardingofthetwoRFPstoSapere(BusinessCaseWriter)andCCM/Jacobs/Johnstaff(HospitalPlanner/Architect)introductorymeetingshavebeenheld.Masterplanning stillneedsto beprogressedasafurtherseriesofworkshopswill needto be held tosupportworkonthelonglistandIndicativeBusinessCase.

v)Southern DHBandMinistryofHealthstaffcontinuetorespondtoaseriesofOfficialInformationActrequests.

c)Scopechangessincelastreport

TheIndicative BusinessCase (IBC)phasehasjustcommenced.Aproject planisbeingpulled togetherandtheGateway0 recommendationsbeingworkedthrough.

Theconsultationprocessforthe Detailed Services Planhasbeenamended withtheClinicalGovernanceGroup still intheprocess of beingestablished.Meetingswiththatgroup andeightdirectorate level meetingswillbe heldfromendofSeptemberthroughtoOctober.

d)Issues arising sincelastreport

Thesamechallengescontinuearoundlogistics.

Theestablishmentof theclinicalleadership grouphasbeendelayed.

Thedevelopmentofafinancialmodelframework bythe endofSeptember iscriticaltodeliveryoftheIndicativeBusiness case byJunenextyear. Saperewill reviewthemodeldeveloped bySouthernDHB.

3)Milestones

# / MilestonesStage1 / TargetDate / Actual/Comment
B / IndicativeBusinesscase
RFP-IBC
1. / RFPs forBusinessCaseWriterandHospitalPlanner postedonGETSandAconex / 3June2016 / Complete
2. / EvaluationPanelsconvened / 11-15July2016 / Complete
3. / Approvaltonegotiatewithpreferredrespondents(SPGandMOH) / 26July2016 / Complete
4. / Contractscommence / 8August2016 / Withcontractorsforsigning
IndicativeBusinessCasePlanningPhase
5. / CompletedevelopmentofafinancialmodelforSouthernDHB / 29Sept2016 / Ontrack
6. / DraftDetailedServicesPlan:Stage2(Deliverable4-Sapere)producedforconsultation / 28Oct2016 / Ontrackafterareplanningexercise
7. / FinalDetailedServicesPlan:Stage2(Deliverable4-Sapere)toSPG / 29Nov2016
8. / LonglistofoptionstoSPG / 20Dec2016
9. / MarketsoundingforPPP(ifrequired) / April/May2017
10. / ShortlistofoptionsanddraftIBC / MidApril2017
11. / SPGreview / 2May2017
12. / Gateway1Review / May2017
13. / IndependentQualityAssurance / TBC
14. / OptionsconsultationwithSDHBandstakeholderstoidentifypreferredoption / May2017
15. / FinalIBC(includingdraftconceptdesign) / MidJune2017
16. / SPGReview / EndJune2017

Thesetimeframesdonotinclude anyreviewsbytheCapitalInvestmentCommitteenorsignoffs(whererequired)bythe MinistersofHealthand FinanceorCabinet.

4)Budget

On29October2015theprojectwasgranted$1.6MfromtheHealthCapitalEnvelopeuntil30June2016andspent justover$572k.ThefiguresbelowareuptotheendofJuly2016againstthenewtwoyearbudgetprepared in April2016.

Budget2017/18 / Budget2016/17 / TotalBudget / Actual / Remaining
Healthplanner
BusinessCase
Architect
QuantitySurveyor
Buildingreports
FinancialAnalyst
Travelandaccommodation
ProjectManagerandprojectsupportcosts
PeerreviewQS
Legalfees
Probity
GatewayandAssurance
SPGcosts / 250,000
Total /
2,451,250 / 3,450,250 / 5,901,500 /
28,352 / 5,873,148

5)ProspectiveView

a)Upcomingactivityin nextperiod

Themain activitiesinthenextreportingperiod are:

i)SPGmeetingon 30 AugustinInvercargill

ii)Meetingsfor the Chairon 26 Augustin Dunedin

iii)Sapere toprogresstheDetailed Services PlanII with afocusondata in thenextfewweeks

iv)Completingthemasterplanningin consultation withSapereand theCCM,

Jacobs andJohnstaffconsortiumrepresentatives

b)Risks

Thetoprisks in therisk registerare listedbelow. High risksarethosethathavebeenidentifiedwith the potentialtodelayprogressoftheprojectand/orimpactontheabilitytoachieve the deliverables.

6)Recommendations

Itis recommendedtheSouthernPartnership Group (SPG):

a)Note and discussthis progressreport.

b)Note thecommunicationsplan hasbeenupdated.