Dunedin Hospital Redevelopment: Stage 1

Progress Report

Author / Kieran Reilly
Report Date / 10 May 2016
Document Location / Lotus Notes Capital and Operating/ Capital Project – Dunedin/ Key Documents
Report Number / 4

Sign Off

This document is being submitted to the Southern Partnership Group via the following group(s) for review:
Project Sponsors
Carole Heatly, SDHB CEO
Mhairi McHugh, Manager Capital and Operating, MoH / Southern Steering Group 13 May 2016

1)  Project Objective

The objectives for Stage One are 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)  Current Progress

a)  Project objectives

Within scope? / Yes
On time? / Yes / Overall on track- for Sapere and Southern DHB the pressures are around the time needed to organise and complete consultation with key stakeholders within a fixed timeframe.
There has been a delay in producing some guidance on the role clinicians are expected to play in different phases of the project
On budget? / Yes / Within budget but discussions ongoing with Sapere in respect of their contract.
Any significant risks? / Yes. / No new issues – refer risks section

b)  Achievement since last report

The main achievements between 12 April 2016 and 10 May 2016 are:

i)  The Chair met with the Dunedin Mayor and Dunedin City Council CEO on 18 April 2016.

ii)  Margaret Wilsher videoconferenced with Southern DHB’s Clinical Council on 26 April 2016.

iii)  Officials submitted a budget bid for 2016/17 and 2017/18.

iv)  Sapere provided the draft Strategic Service Plan (Deliverable 1) and is continuing its work on the Strategic Assessment and Detailed Services Plan (Deliverables 2 and 3) – refer to their separate progress report.

v)  Gateway 0 has been discussed with Treasury and series of 1 hour interviews are being set up for key members of the project between 13 and 15 June 2016.

vi)  Preparation of draft RFPs for the next phase of the project.

vii)  Confirmation of the arrangements for 24 May 2016 which will include the first Investment Logic Mapping workshop.

c)  Scope changes since last report

Planning for the Indicative and Detailed Business Cases is underway in line with the expectations outlined by the Ministers of Health and Finance in their 22 April 2016 letter. They are to be completed by June 2017 and June 2018 respectively. As a result officials are discussing bringing forward the timing of the Detailed Service Plan (Deliverable 4 of contract with Sapere) which is currently scheduled for March 2017.

The Ministry of Health has also prepared separate Requests for Proposals for Business Case Writing Services and Architect/ Hospital Planning Services.

d)  Issues arising since last report

Refer also to Sapere’s progress report. Sapere and MoH have already met to discuss their contract and the additional work required and a further meeting is scheduled for 16 May 2016 to discuss Deliverable 4.

The timing for the Indicative Business Case (IBC) and finalising the Detailed Service Plan milestones now indicates the two key dates set by the Ministers of Health and Finance. SPG will be asked to approve a project plan for the IBC phase at its 28 June 2016 meeting. SPG can also expect to be asked to endorse the preferred respondents for each RFP at their 26 July 2016 meeting.

3)  Milestones

# / Milestones Stage 1 / Target Date / Actual / Comment
A / Strategic Planning Phase
1. / Completing a Risk Profile Assessment – RPA (BBC) / December 2015 / 15/12/2015
2. / RFP for health planners and business case writers to support the strategic phase / December 2015 / 23/12/2015
Sapere preferred respondent
3. / Complete design of a financial model for Southern DHB / 19 April 2016 / Change approved at 9 Feb SPG meeting
4. / Draft Strategic Service Plan to SPG / 19 April 2016 / Deliverable 1 in RFP
Finalise June
5. / Gateway 0 Review complete / 17 June 2016 / Confirmed since last meeting
6. / Strategic Assessment document covering the case for change / 28 June 2016 / Deliverable 2 in RFP
7. / Detailed Services Plan / 28 June 2016 / Deliverable 3 in RFP
B / Proposal phase
8. / RFP for Health Design Team to work on Indicative Business Case / April 2016 / Underway
9. / Complete development of a financial model for Southern DHB / 30 Sept 2016 / Will be discussed at SPG in October
10. / Finalise the Detailed Service Plan1 / March 2017 / Deliverable 4 in RFP is being discussed
11. / Define the Models of Care / May 2017
12. / Feasibility Study (Facility options) / June 2017
13. / Finalise the Indicative Business Case document / June 2017

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

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 the project was granted $1.6M from the Health Capital Envelope until 30 June 2016. A budget bid for 2016/17 and 2017/18 was prepared in April 2016. The figures below are up to the end of April 2016.

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 / 28,546
Total (GST ex) / 1,599,960 / 267,174 / 1,332,786

5)  Prospective View

a)  Upcoming activity in next period

The main activities in the next reporting period are:

viii)  The Chair, Southern DHB Commissioner and CEO are scheduled to meet with Peter Crampton, Pro Vice Chancellor, University of Otago and other University representatives on 23 May 2016.

ix)  The first ILM Problem Workshop will be held after SPG on 24 May 2016. A second Benefits workshop will be held on 28 June 2016.

x)  Sapere to finalise the Strategic Service Plan (Deliverable 1) in June while continuing their work on the Strategic Assessment and Detailed Services Plan for SPG on 28 June 2016.

xi)  Next media release and ongoing updates of material on the Ministry of Health and Southern DHB websites.

xii)  Confirming a meeting schedule for Gateway 0 in June with participants.

xiii)  Officials are now expecting to produce 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 in June rather than May.

b)  Risks

The top risks in the risk register are listed below. 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 with the overall timelines now confirmed SPG will be advised of what changes are needed to Sapere’s contract for the Detailed Services Plan (Deliverable 4 currently scheduled for May 2017). A risk around changing timelines for the project has now been closed.

c) Note officials have submitted a budget bid for 2016/17 and 2017/18 to cover both the Indicative and Detailed Business Case phases. SPG will be advised of the outcome.

d)  Note the delay in officials preparing 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. This does not affect overall project timelines.

e)  Discuss the separate memo regarding two draft Request for Proposals for release to market. SPG will be asked to endorse the preferred respondents at its July meeting.

f)  Note an alternative arrangement will be needed for SPG in September as a quorum of members will not be available.

g)  Note interviews with the panel for Gateway 0 are being set up for 13-15 June 2016.