Dunedin Hospital Redevelopment: Stage 1

Progress Report

Author / Kieran Reilly
Report Date / 2 Feb 2016
Document Location / Lotus Notes Capital and Operating/ Capital Project – Dunedin/ Key Documents
Report Number / 1

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
29 Jan 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
On budget? / Yes
Any significant risks? / No but there are still some gaps in resourcing to being worked through.

b)Achievement since last report

This is the first progress report. The main achievements between 1 December 2015 and 14 January 2016 are

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

ii)Selection of Sapere as the preferred respondent for the RFP to support the strategic planning phase. The contract with Sapere has been signed by all parties.

iii)Development and approval of a Communications Plan.

iv)Completion of the Risk Profile Assessment for Treasury which confirmed this as a high risk project.

v)Both the Ministry of Health and Southern DHB websites have dedicated areas for releasing information and key reports.

.

c)Scope changes since last report

Cathy Webber (with support from Trish Smith) is now the MoH’s senior advisor for this project. She will also be the key contact for Southern DHB with respect to the interim works and any DHB reporting to the Capital Investment Committee.

It should be noted that the late paper to SPG’s 9 February meeting on changes to the overall project timelines is not factored into this report.

d)Issues arising since last report

The Ministry of Health still needs to secure some administration and specialist procurement resource to support the project.

While not directly in the scope of this phase of the project, in the past month there were media queries directed to the SPG Chair, DHB and Ministers Office regarding the physiotherapy pool which is located adjacent to the Fraser Building on the Dunedin campus. A trust has been raising funds to upgrade the facility and is looking for a long term lease arrangement of up to 30 years. Any lease longer than 5 years requires the approval of the Minister of Health.

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 development of the Strategic Service Plan, Strategic Assessment and Service Plan / December 2015 / 23/12/2015
Appoint contractor to develop a financial model for Southern DHB / February 2016 / Ministry and SDHB discussing resource
Complete 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 / 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 / Dates to be discussed with SPG
RFP for Health Design Team to work on Indicative Business Case (commencing June 2016) / April 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

Theses 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 MoH and DHB have agreed in-house resource from the DHB will be used to develop the financial model. The work needs to commence in February and the timeline for completion confirmed.

The figures below are up to 31 December 2015. A date for the first Gateway Review is to be confirmed with Treasury in March – 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
0
Total / 1,599,960 / 47,511 / 1,552,449

5)Prospective View

a)Upcoming activity in next period

The main activities in the next reporting period are

i)MoH to complete a data request for Sapere covering the information in national collections. A summary NMDS and Pharms data set has already been provided to Sapere with NNPAC and ARC data to be provided next week. Discussion is being held with the National Collections Team and Sector Services Team in MoH in respect of completing the detailed data sets for NNPAC, NMDS and Mental Health.

ii)Steering Group teleconference held on 29 Jan 2016

iii)First quarterly report to Minister of Health

iv)A Southern Partnership Group(SPG) meeting on 9 Feb 2016, including meeting with Sapererepresentatives. Sapere have already teleconferenced with the Chair of SPG and the DHB’s leadership team.

v)Meeting schedule to be set up between Sapere and key stakeholders. Arrangements for an accredited facilitator to support Intervention Logic Mapping workshops are to be confirmed between Sapere and MoH.

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

vii)MoH, Treasury and Southern DHB to discuss the specific arrangements for developing a financial model for the DHB.

b)Risks

The top risks in the risk register that have been identified with the potential to delay progress of the project and/or impact on the ability to achieve the deliverables are listed below.

# / Risk Description
(If X happens, there is a risk of Y, meaning Z impact) / Risk Rating / How Risk Will Be Managed
1 / The initial timelines assume that the work already completed by Southern DHB will shorten the usual processes in the Stage 1 of the project. / Medium / Sapere will review of all relevant documentation produced by Southern DHB. They will also meet with SPG in February and are planning a series of meetings and workshops with key stakeholders.
2 / There has been relatively little communication with key stakeholders to date as the project has worked through its establishment processes. Misinformation may already be in circulation. / Medium / A communications plan has been approved in December and both the MoH and SDHB now have publicly accessible informationon their websites. The MoH and SDHB’s communications staffare to keep each other informed of key issues and responses.
3 / Awaiting final signoff of the MoH contract which is causing a slight delay to the start of the work. / Medium / Contract provided to Sapere on 18 January. In the interim there have been discussions between Sapere and MoH on their data request requirements, some discussions with members of the project team and contact lists are being prepared to support establishment of meetings. Sapere have also commenced teleconferences with key stakeholders.
4 / Given the long timeframes involved in capital projects there is a risk around the fit of the interim works to the redevelopment and that the scope of work for the main redevelopment and approvals given are re-litigated in the future. / Medium / We cannot anticipate the preferred option at this stage just that a range of options will need to be identified and work through before a preferred option is put forward to the Ministers of Health and Finance. This risk will be managed through good documentation and full consultation processes. Progress with the interim works and ICU business case will be covered off as part of regular updates to SPG.
5 / Development of a financial model for Southern DHB was planned for between February and April – the completion date will need to be reviewed once DHB resource commences work on it. / Medium / CM DHB has a financial model that Southern DHB will review to see if it can be adapted for local use. Treasury have offered resource to support the staff developing the model.

6)Recommendations

It is recommended the Southern Partnership Group:

a)Note this first progress report.

b)Note there are no significantissues requiring resolution in this report but SPG will be kept informed on progress with resourcing arrangements.

c)Note arrangements for developing a financial model for the DHB have been agreed. Southern DHB will provide a senior analyst so that the work can commence in February as planned. Officials will discuss the specific arrangements for supporting this work further.

d)Note theMinistry of Health’s website for the redevelopment projectis now up and running. Key material,with any appropriate redactions, will be posted on it at least monthly. It will include media releases, key official papers and these progress reports.

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.