47 Lane Road, Havelock North, Hawke's Bay
M. 021 477 635
E.
27 May 2016
Hon Dr Jonathan Coleman (Minister of Health)
Hon Bill English (Minister of Finance)
Dear Ministers
Dunedin Hospital Redevelopment: 2nd Quarterly Report
Thank you for meeting with the Southern Partnership Group on 30 March 2016 and for the subsequent advice received on your expectations for the project. We are progressing the planning for the Indicative and Detailed Business Cases in line with your expectations and I will provide further detail on the arrangements for the next two years in the next quarterly report.
I had a constructive meeting with the Dunedin City Mayor and City Council’s Chief Executive on 18April 2016. We have agreed to maintain a dialogue to ensure the outcomes of the Hospital redevelopment process best meet the needs of the people of the Southern Region and Dunedin City.
Southern DHB Commissioner, Kathy Grant, Southern CE Carole Heatly, and I also met with the Pro Vice Chancellor of the University of Otago and other key university representatives on 23 May 2016. The University is keen to be directly involved in the project and retain a co-location with Dunedin Hospital onsite within the existing Dunedin Hospital campus. The Hospital and University have a long standing relationship dating back more than 100 years and input of the University and Medical School will be an important factor in the redevelopment project. There are historic and future implications of this relationship that we may meaningfully discuss at some convenient time.
Sapere Research Group remains on track to deliver the required Strategic Assessment document to our 28 June 2016 meeting. The Partnership Group has made it clear to Sapere that, while drawing on past work, a fresh approach is being sought and all scenarios for the delivery of each and every healthcare service for the entire Southern Region should be considered. Sapere delivered a draft strategic services plan as expected in April. It is expected to be finalised in June after consultation with key stakeholders at which time we propose it being publicly released. The consultation process has to date included a series of workshops run with Southern DHB staff throughout April and May.
This month the Southern Partnership Group has approved a plan for securing additional resource to support the next phase of work on the Indicative Business Case, which will establish the options for redevelopment by June next year. A Request for Proposals will be issued shortly inviting input into the preparation of the Business Case and also Architectural and Hospital Planning phases of the redevelopment project. This work will be commissioned within existing approved budgets.
To further advance planning and to inform the SPG on the options for feasible redevelopment the SPG has also approved a set of building assessments being undertaken to fully determine the condition and capacity of existing Dunedin DHB facilities and infrastructure.
We continue to receive regular progress reports on the important urgent and interim works underway across the Dunedin and Wakari hospital campuses. We have also provided Southern DHB with our feedback on their Implementation Business Case for the ICU work, which has now been submitted to the Capital Investment Committee for review.
As noted in my last report, clinical leadership and engagement is a key enabler for this project. I am pleased to report Southern DHB’s CE Carole Heatly and new Chief Medical Officer, Dr Nigel Millar, are working closely together on this issue.
A list of the current key deliverables and expected dates is attached as an appendix to this report.
I would like to meet with you as soon as convenient to discuss the progress of the work and some of the matters that have come to the attention of the Southern Partnership Group through our consultation and the work of Sapere to date.
Yours sincerely,
Andrew Blair
Chair
On behalf of the Southern Partnership Group
cc Southern Partnership Group members
Kathy Grant, Commissioner, Southern DHB Commissioner
Carole Heatly, CEO, Southern DHB
Jill Lane, Director, Service Commissioning
Michael Hundleby, Director, Critical Projects
Appendix
# / Milestones Stage 1 / Target Date / Actual / CommentA / Strategic Planning Phase
Completing a Risk Profile Assessment – RPA (BBC) / December 2015 / 15/12/2015
RFP for health planners and business case writers for, Strategic Assessment phase / December 2015 / 23/12/2015
Sapere Research Group preferred respondent
Complete design of a financial model for Southern DHB / 19 April 2016
Draft Strategic Service Plan to SPG / 19 April 2016 / Deliverable 1 in RFP
Gateway 0 Review complete / 17 June 2016
Strategic Assessment document covering the case for change / 28 June 2016 / Deliverable 2 in RFP
Draft Detailed Services Plan / 28 June 2016 / Deliverable 3 in RFP
B / Next phases
Final Indicative Business Case document produced for review / June 2017 / As per your letter of 22 April 2016
Final Detailed Business Case document / June 2018 / As per your letter of 22 April 2016