UN/APPROVED

NHS GRAMPIAN

Minute of Extraordinary Meeting of GRAMPIAN NHS BOARD held in Open Session

on Tuesday 1 March 2011 at10.00am

in the Seminar Room, Curl Aberdeen, Eday Walk, Aberdeen

Present

/ Dr David Cameron / Chairman
Mr David Anderson / Non-Executive Board Member
Councillor Lee Bell / Non-Executive Board Member
Mr Raymond Bisset / Non-Executive Board Member
Mr Richard Carey / Chief Executive
Councillor Kate Dean / Non-Executive Board Member
Dr Roelf Dijkhuizen / Medical Director
Mr Alan Gall / Director of Finance/Deputy Chief Executive
Mrs Jenny Greener / Non-Executive Board Member
Professor Val Maehle / Non-Executive Board Member
Mr Terry Mackie / Non-Executive Board Member
Mr Charles Muir / Non-Executive Board Member
Dr John Reid / Non-Executive Board Member
Mrs Elinor Smith / Director of Nursing and Quality
Mr Gordon Stephen / Non-Executive Board Member
Dr Lesley Wilkie / Director of Public Health and Planning
By Invitation / Mr Gerry Donald / Head of Physical Planning
Mr Andrew Fowlie / General Manager, Moray CHSCP
Mrs Laura Gray / Director of Corporate Communications/Board Secretary
Mrs Heather Kelman / General Manager, Aberdeen City CHP
Dr Pauline Strachan / Chief Operating Officer
Attending / Miss Lesley Hall / Assistant Board Secretary

The Chairman welcomed everyone to the meeting, explaining that it had been arranged to discuss two specific Outline Business Cases.

Item / Subject
1. / APOLOGIES
Apologies were received from Professor Neva Haites, Councillor Bill Howatson, Mrs Christine Lester, MrsElizabethMcDade and Mr Mike Scott.
2. / ABERDEEN COMMUNITY HEALTH AND CAREVILLAGE - OUTLINE BUSINESS CASE
Following Dr Wilkie’s introduction, Mrs Kelman gave an update on the changes to the Outline Business Case (OBC) for the Aberdeen Community Health and CareVillage which the Board had approved in December 2010. These were included in a paper which was tabled.
Mrs Kelman explained that managers from NHS Grampian had attended a meeting with the Scottish Government Health Directorate Capital Investment Group (CIG) the previous week. This had provided information on handling the financial aspects of hubCo projects. As a result of these discussions, changes required to be made to the OBC. The main change to be made was that the basis of the contract with hubCo would be a Service Concession Contract. VAT did not apply to such contracts, so that will lead to a reduction in VAT to be adjusted within the OBC.
Mrs Kelman provided clarification around the Unitary Charge and advised that this was an annual payment to hubCo, which included buildings maintenance to ensure the building would be in a similar state as new at the end of the lease, when NHS Grampian would own the building. As the contract was so far advanced, NHS Grampian had been asked to reduce or remove the optimism bias. Corrections had to be made to reflect changes to car parking charges and the capital grant to Aberdeen City Council for car park provision.
The paper explained the revised revenue consequences and affordability between the OBC approved in December 2010 and the February 2011 revised OBC.
Mrs Kelman advised that a number of other costs were not covered in these figures, but would normally be included in the capital allocation for a project, such as legal fees and art.
Councillor Dean declared an interest as a member of Aberdeen City Council. She remained during the discussion and advised that she would remove herself from Council discussions on the subject.
Following her presentation of the paper, Mrs Kelman answered Board members’ queries relating to the contract.
The Chairman summarised the proposed timetable and process for submission of the OBC.
The Board:
  1. Considered the revised financial information and approved a revision to the Outline Business Case (OBC) to incorporate this information
  1. Requested an update in writing of any further amendments made to the December 2010 OBC prior to submission to the Scottish Government Health Directorate Capital Investment Group (CIG) on 15 March 2011
  1. Confirmed that the revised OBC be forwarded to the CIG with a recommendation for approval on 15 March 2011
  1. Approved progressing the Full Business Case (FBC) on the basis of a Services Concession revenue funded contract via huboc, to return subsequently to the Board for approval.
The Chairman confirmed that the OBC showing amendments as tracked changes would be circulated to Board members for their endorsement prior to submission to CIG.
3. /

FORRES COMMUNITY HEALTH AND CARE CENTRE – OUTLINE BUSINESS CASE

The Chairman advised that the principles about hubCo and finances referred to in the previous item applied to this OBC too. The OBC and covering paper were tabled at the meeting.
Dr Wilkie introduced the item by explaining that the Grampian Health Plan set out the vision for services in NHS Grampian and that the Health and Care Framework provided more detail. She advised that the OBC for the Forres Community Health and Care Centre was a means of implementing the vision to provide updated and good quality services for the people in Grampian.
Mr Fowlie explained that the paper was being submitted to the Board for approval of the OBC, the procurement route for which was now hubCo. He outlined the strategic context and explained that work had been done with the local community and staff to address the future health and care needs of the population. He advised that the consensus from the public was they wanted good quality support in their own locality, care delivered at home and timely access to specialist care as required. The paper outlined the range of services to be provided by the new development.
The background section of the paper referred to the Full Business Case (FBC) which had been approved by the Board in October 2009. With hubCo arrangements, the present OBC would now be affordable and deliverable within the resources available to NHS Grampian.
The paper outlined the revenue cost implications which would be refined during the development of the FBC which would be presented to the Board at a later date.
In response to queries, Mr Fowlie stated that he would like to see the facility being used as a hub for the local community. He said that work was progressing on the basis of outline guidance and that advice on any streamlining of the process would be taken on board.
Plans would be made to provide healthcare services to take account of any changes in future demands for the service. Mr Fowlie advised that the Moray Task Force was reviewing intelligence regarding the impact of the closure of Kinloss Airbase and the possible repatriation of the Army to the area in the future.
The Board:
  1. Noted the progress to date and stakeholder involvement
  1. Approved the draft Outline Business Case (OBC)
  1. Delegated authority to the Asset Investment Group to make minor amendments to the OBC documentation prior to submission to the Scottish Government Health Directorate Capital Investment Group (CIG)
  1. Approved the submission of the OBC documentation to the CIG with a recommendation for approval
  1. Approved progressing the development of a Full Business Case (FBC) on the basis of a hub procurement.
Mr Carey reflected that by making these decisions today, the Board had taken further significant steps forward in realising the Healthfit vision. He referred to other major developments including the Suttie Centre, redevelopments at Aberdeen Royal Infirmary and Dr Gray’s Hospital, the Emergency Care Centre and the DentalSchool and other dental facilities. All these had happened because NHS Grampian had a clear vision started by “Healthfit” and the aim of shifting the balance of care. Significant schemes had progressed at a time of economic hardship which gave optimism about the future. Mr Carey thanked all the staff who had put in so much work to make these developments happen and for the tremendous progress made.
The Chairman endorsed the thanks to staff.
4. /

DATE OF NEXT MEETING

Tuesday 5 April – Committee Room 5, Woodhill House, Westburn Road, Aberdeen

Signed ……………………………………….

Chairman

Date …………………………………

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