Dunedin Hospital Redevelopment: Stage 1

Progress Report

Author / Kieran Reilly
Report Date / 12 April2016
Document Location / Lotus Notes Capital and Operating/ Capital Project – Dunedin/ Key Documents
Report Number / 3

Sign Off

This document is being submitted to the Southern Partnership Group via the following group(s) forreview:
Project Sponsors
Carole Heatly, SDHB CEO
Mhairi McHugh, Manager Capital and Operating, MoH / Southern Steering Group
8 April 2016

1)Project Objective

The objectives forStage Oneare to prepare a Strategic Assessment and Indicative Business Case that will provide an early indication of the best way forward to address issues with the facilities at the Dunedin Hospital campus.

2)CurrentProgress

a)Project objectives

Within scope? / Yes
On time? / Yes – overall on track- however the strategic service plan will remain draft until Sapere complete workshops and consultation in June.
On budget? / Yes – within budget but discussions to be held with Sapere in respect of their contract and SDHB in respect of building assessment work.
Any significant risks? / Yes. Clinical engagement – refer risk section

b)Achievement since last report

The main achievements between 8 March 2016 and 12 April2016 are:

i)The 15 March2016 meeting of the Southern Partnership Group (SPG) was held by videoconference with a media release subsequently issued.

ii)SPG members met with the Ministers of Health and Finance on 30 March 2016.

iii)The Ministry of Health responded to Otago Daily Times (ODT) request for information on the costs incurred to date by the Southern Partnership Group (SPG) and a separate Official Information Act regarding reports or memos written by the Ministry of Health or consultants about the SPG. The appointment letters of SPG members and first quarterly report to Ministers were prepared for release with an accompanying Health Report.

iv)Southern DHB has also replied to a request from the ODT for a copy of the 2014 Sapere Chow Hill report on the facilities on the Dunedin campus. This was a reference document provided at the initial SPG meeting of 10 November 2016.

v)Sapere has worked with SDHB to set up a series of workshops with SDHB staff as well as establishing Rural and University Reference Groups to progress their work. The workshops will run until mid-May (refer Sapere’s progress report).

vi)The dedicated area of the Ministry of Health websitecontinues to be updated

vii)Officials are preparing advice for joint Ministers regarding the timelines of the project for the Indicative and Detailed Business Cases and a budget bid for 2016/17 to 2017/18.

viii)A workshop to discuss the design of a financial model for Southern DHB was held on 4 April 2016 with representatives from SDHB, Treasury and the Ministry of Health in attendance. The model is needed for any work on options which arises as part of the Indicative and Detailed Business Cases.

ix)An ILM facilitator has been arranged with the intention that the 2 hour workshop be run on the same day as the 24 May SPG meeting is held in Dunedin.

c)Scope changes since last report

Sapere are seeking to finalise the strategic services plan in June so that the consultation processes set up with Southern DHB can be used to finalise the report.

d)Issues arising since last report

Refer also to Sapere’s progress report. Sapere have been asked to report to MoH on their progress against budget given the additional work required with SDHB to set up the workshops and reference groups.

The timing forthe Indicative Business Case (IBC) and finalising the Detailed Service Plan (currently scheduled for March 2017 and part of Sapere’s contract)may need to be realigned depending on the overall timeframes approved by Ministers of Health and Finance for the IBC and Detailed Business Case. This affects milestones 8-15 below.

The Ministry of Healthhas appointed some additionaladministration support for the next 6 months and has identified the likely resource to support the next stage of procurement for the project.

3)Milestones

# / Milestones Stage 1 / Target Date / Actual / Comment
A / Strategic Planning Phase
Completing a Risk Profile Assessment – RPA (BBC) / December 2015 / 15/12/2015
RFP for health planners and business case writers to support the strategic phase / December 2015 / 23/12/2015
Sapere preferred respondent
Complete design of a financial model for Southern DHB / 19 April 2016 / Change approved at 9 Feb SPG meeting
Draft Strategic Service Plan to SPG / 19 April 2016 / Deliverable 1 in RFP
Finalise June
Gateway 0 Review complete / 31 May 2016 / Specific date to be agreed with Treasury
Strategic Assessment document covering the case for change / 28 June 2016 / Deliverable 2 in RFP
Detailed Services Plan / 28 June 2016 / Deliverable 3 in RFP
B / Proposal phase / Officials advice
RFP for Health Design Team to work on Indicative Business Case (commencing June 2016) / April 2016
Complete development of a financial model for Southern DHB / October 2016
Finalise the Detailed Service Plan[1] / March 2017 / Deliverable 4 in RFP
Update the Masterplan / April 2017
Draft Indicative Business Case document produced for review / April 2017
Define the Models of Care / May 2017
Feasibility Study (Facility options) / June 2017
Finalise the Indicative Business Case document / June 2017

These timeframes do not include any reviews by the Capital Investment Committee nor signoffs (where required) by the Ministers of Health and Finance or Cabinet.

4)Budget

On 29 October theprojectwas granted $1.6M from the Health Capital Envelope until 30 June 2016. A separate budget bid for 2016/17 will need to be prepared in April 2016. The figures below are up to the end of March2016.The contract for Sapere was only signed in January and they have just submitted their first invoice after delivering the strategic services plan.

A date for the first Gateway Review is to be confirmed with Treasury in March – officials will meet on 19 April. It will likely be late May or early June. The Ministry of Health and DHB are using in house communications resources rather than contractors.

Budget / Actual / Remaining
Health planner
Financial Analyst
Travel and accommodation
Project Manager and project support costs
Peer review QS
Legal fees
Probity
Gateway and Assurance
SPG costs / 21,517
Total / 1,599,960 / 120,189 / 1,479,771

5)Prospective View

a)Upcoming activity in next period

The main activities in the next reporting period are:

i)The Chair has meetings scheduled with the Mayor and Dunedin City Council CEO on 18 April 2016 and with Peter Crampton, Pro Vice Chancellor, University of Otago on 23 May 2016.

ii)Andrew Connolly and Margaret Wilsher will videoconference with Southern DHB’s Clinical Council on 26 April 2016.

iii)Sapere to finalise theStrategic Service Plan(Deliverable 1) for review at June SPG meeting and continue their work on the Strategic Assessment and Detailed Services Plan for 28 June 2016.

iv)Next media release and update of material on the Ministry of Health and Southern DHB websites.

v)Confirm arrangements for Gateway 0 with Treasury.

vi)Officials to produce some guidance on the role clinicians are expected to play in different phases of the project, including where a release from clinical time may be necessary.

vii)Progress the ILM workshop arrangements.

b)Risks

The top risks in the risk register are listed below. A risk related to the therapeutic pool has been added and the risk around clinical engagement changed to high risk. High risks are those that have been identified with the potential to delay progress of the project and/or impact on the ability to achieve the deliverables.

Statement of Issue/Risk / Impact / Overall Rating / Management Strategy

6)Recommendations

It is recommended the Southern Partnership Group (SPG):

a)Discuss this progress report.

b)Note a project brief for the next phase of work on the Indicative and Detailed Business case will be prepared for the June SPG meeting once decisions on the project timelines and budget for 2016/17 and 2017/18 are confirmed. SPG will also be advised if this affects Sapere’s contract for the Detailed Services Plan (Deliverable 4 currently scheduled for May 2017).

c)Notethe main risk,currently, is around clinical engagement which has been raised to high risk. Mitigating actions to date include:

i)SDHB’s appointment of an experienced CMO. Southern DHB’s CEO and CMO will discuss the most appropriate clinical leadership arrangements to support this project going forward.

ii)Andrew Connolly and Margaret Wilsher will videoconference in with SDHB’s Clinical Council on 26 April 2016.

iii)Officials have been asked to prepare some guidance for the next SPG meeting on the role clinicians are expected to play in different phases of the project, including where a release from clinical time may be necessary.

d)Note,prior to the May SPG meeting,SPG will be provided with some further advice on the building assessment workthat needs to be completed during the Strategic Assessment phase.

e)Approve the finalisation of the strategic services plan in June (Sapere’s Deliverable 1) which is later than originally scheduled but allows for completion of consultation with key stakeholders.

Redevelopment of Dunedin HospitalProgress Report Stage 11

[1] Refining the preferred service of models of care in detailed consultation with Departments, staff and the community.