NHS Grampian

Capital Plan 2007/08

Introduction

The Asset Investment Group (AIG) of NHS Grampian has prepared a capital plan for 2007/08 which supports the implementation of the Health Plan. This one year capital plan includes allocations for projects that have been approved by the AIG together with provisions for projects that are at the planning stages.

The ten year capital plan is currently the subject of a major review – this review commenced with a Strategy and Service Redesign Committee/Asset Investment Group seminar on 2 July. The context for the review is summarised below.

Aim

This paper submits the 2007/08 capital plan to the NHS Grampian Board for formal approval

Strategic Context

As stated above, the 10 year capital plan is being reviewed following the SSRC/AIG seminar held on 2 July 2007. The review will include:

  1. An assessment of how the facilities and equipment priorities identified at the seminar can be addressed through the capital projects that are currently being planned or are at the early stages of development
  1. Clearer linkages to the health plan priorities including the transfer of activity
  1. Proposals to upgrade or replace areas which will require a high level of backlog maintenance e.g. ARI, maternity hospital, primary care premises
  1. Specific costs and funding provisions for high priority developments e.g. Emergency Care Centre, AberdeenHealthVillage, Anchor Unit/Cancer Centre
  1. The re-use or disposal of buildings that are no longer fit for purpose
  1. An assessment of the revenue funding issues and affordability

It is expected that the review will be completed in December 2007.

Capital Allocations

The capital plan for 2007/08 is set out in the annex to this paper. The plan identifies the total funding available of £31.658m. The main source of funding is the formula allocation from the Health Department supplemented by additional specific allocations for the following:

  1. Medical equipment
  1. Waiting times (diagnostics, cancer)
  1. Picture Archiving and Communications System (PACS – roll out of the National imaging archive and retrieval system)
  1. Dental premises modernisation
  1. Central Buchan Community Resource Centre
  1. North of Scotland Boards’ contribution to the new Cath Lab at ARI
  1. End of year flexibility i.e. carry forward, from 2006/07

In addition to the above the formula allocation has been reduced by £2.150m as part of the funding mechanism for the Mathew Hay project i.e. the funding is received by the University of Aberdeen via an inter-departmental transfer within the Scottish Executive.

The allocation section of the plan also indicates NHS Grampian’s intention to carry forward £4.001m for use in future years as part of a brokering facility offered by the SEHD. The plan also indicates the potential return of sale proceeds although further work is being done to assess how this benefit can be used to best effect e.g. further dental modernisation.

Investment Plans

The investment plans for 2007/08 are summarised in the attached annex. The revenue costs associated with the capital investment are included in the revenue budget for NHS Grampian as approved by the NHS Board.

The Board’s attention is drawn to the following high priority issues included in the plan:

  1. A total of £12.593m will be spent on replacing and improving the infrastructure – medical equipment, buildings and information technology. Part of the capital plan review will cover infrastructure to ensure that investment keeps pace with clinical standards and obsolescence
  1. The following projects have been approved by the AIG (based on the NHS Board’s capital plan approval last year) in support of the Health Plan:
  • Two new Cath Labs at Aberdeen Royal Infirmary at a cost of £4.431m as part of a North of Scotland plan to reduce waiting times for cardiac procedures. The new labs will be operational from January 2008
  • The balance of funding for the Matthew Hay project is included. This joint NHS/University of Aberdeen project started construction in February and will be complete in April 2009
  • There will be significant investment – £2.961m – in equipment and facilities to reduce waiting times
  • A new staff nursery (to replace existing facilities) will be provided on the RoyalCornhillHospital site – this project will commence in early 2008
  • The laundry at Foresterhill will be upgraded to improve the quality of the linen service to hospitals in the area
  • The upgrade of FraserburghHospital as part of the Aberdeenshire plan has commenced at a total cost of £2.335m. This project is being taken forward on a phased basis and will be completed in 2009/10
  • £1.250m will be spent on the Central Buchan Resource centre as part of the implementation of the Aberdeenshire plan
  • A new practice centre in Laurencekirk will commence construction at a total cost of £1.939m
  • The practice centre in Kincorth will be upgraded at a cost of £750,000
  • A range of projects to upgrade dental premises will commence at a total cost of £3.204m
  • The Elmwood learning disabilities facility will be extended at a cost of £349,000 in line with Mental welfare Commission recommendations
  1. Preliminary work will be undertaken on the following proposals subject to business case approval:
  • Emergency Care Centre to integrate primary and acute services providing unscheduled care services
  • MRI Centre at Foresterhill
  • Relocation of acute clinics from Woolmanhill to Foresterhill
  • Energy Centre for Foresterhill which will secure energy supply and reduce carbon emissions
  • AberdeenHealthVillage to replace Denburn Health Centre, part of Woolmanhill, and create a resource for Aberdeen City CHP to provide a range of intermediate care services
  • Combined community hospital/resource centre/primary care centre in Forres at a total cost of £10.9m (subject to SEHD approval)
  • ChalmersHospital and Health Centre at a total cost of £14.237m (subject to SEHD approval)
  • Stage 2 of the Aberdeen Dental Institute in conjunction the development of proposals for a new DentalSchool

Conclusion

The capital plan for 2007/08 provides considerable support for the implementation of the Health Plan across Grampian. It is affordable within the capital allocations available andthe revenue budget for NHS Grampian. The review of the 10 year plan will ensure that priorities are addressed in a strategic and cost efficient way.

Recommendation

The NHS Board is asked to approve the capital plan for 2007/08 as agreed and recommended by the Asset Investment group.

G Smith