NHS GRAMPIAN

Backlog Maintenance: East End 2 Block

Aim

The purpose of this paper is to seek Board approval to commence with the first phase of the NHS Grampian backlog maintenance programme and to update members of progress with the development of the over-arching strategic backlog maintenance programme.

Context

The Scottish Government’s “Policy for Property and Asset Management in NHS” issued in September 2010 - CEL 35(2010) - requires all NHS Boards to target backlog maintenance reduction as an integral part of their Property and Asset Management Plans. The NHS Grampian Property and Asset Management Plan approved by the Board in April 2012 reflected the commitment within NHS Grampian to address backlog maintenance across our property portfolio prioritising available capital and revenue funding together with asset disposal proceeds to target a significant reduction in high and significant risk backlog maintenance in clinical areas over the next five years.

The Scottish Government Health and Social Care Directorates (SGHSCD) have agreed an overall funding package as part of our Local Delivery Plan to enable delivery of this challenging target.

The key areas of focus are on the following:

·  targeted investment at the sites with the highest level of backlog maintenance – Aberdeen Royal Infirmary Phase 2 and East End Medical Block 2 (EE2) (£20.6m) and re-provision of services to allow disposal of Denburn Health Centre (£5m) ; and

·  commitment to a programme of targeted works to address backlog and statutory compliance issues across the range of our properties (£27m over the period of the plan).

Discussion

Completion of the Emergency Care Centre (ECC) in December 2012 created the turning space to undertake essential backlog maintenance in the areas of ARI which are to remain as inpatient facilities i.e. the East End 2 and Phase 2 buildings. The backlog maintenance investment plans for both East End 2 and Phase 2 are being taken forward within the overall risk reduction plan for NHS Grampian by the Facilities Department.

A detailed investment plan for the overall programme of backlog maintenance works will be available for consideration at the December 2013 Board meeting for formal approval. A total of circa £53 million has been identified for investment in backlog maintenance reduction in our financial plan over the period 2013/14 to 2017/18.

The plans which will affect the East End 2 building are the furthest advanced with all design work complete and preliminary asbestos survey work underway. The total series of work programmes within the East End 2 totals £5.542m, subject to approval.

It is assessed that the value of backlog risk that will be eliminated by these programmes in East End 2 will be £1.25m.

Work continues to refine cost estimates relating to the remaining aspects of the programme including Phase 2 at ARI and re-provision of services from Denburn health Centre.

Recognising the complexity of the service moves involved it is necessary to commit now to the target price for the East End 2 building works, at a cost of £5.542m in advance of approval of the overall backlog maintenance programme by the Board in December 2013.

The aim is to manage the planned service moves at ARI to allow the East End 2 building to be operational again at the end of June 2014.

Plans to deliver the remaining aspects of the backlog maintenance programme are under development and details including phasing and cost estimates will be available as part of the overall programme for consideration in December 2013.

Conclusions

The proposal for work planned within the East End 2 building at ARI is consistent with the objectives outlined in the Property and Asset Management plan and the funding parameters agreed as part of our Local Delivery Plan. In addition the work is consistent with the development plan for Foresterhill.

The proposals are being taken forward as part of a wider plan to reduce high and very high risk backlog maintenance in our clinical areas.

The plans required to facilitate the works at East End 2 deliver backlog reduction in their own right but also enable the other ward moves necessary to deliver the larger element of this scheme within Phase 2 at ARI.

The acute management team are currently working with endowment fund stewards to develop proposals, subject to the approval of the Endowment Committee, for the use of endowment funds to enhance the environment in the affected wards and departments.

Strategic Risk

Risk 855 – Our infrastructure is not able to support our objectives for future patient care.

Recommendations

The Grampian NHS Board is asked to approve the following recommendations:

·  The Chief Executive and Board Chairman be authorised to sign the contract agreement with the appointed Principal Supply Chain Partner to proceed with the backlog works programmes within the East End 2 building at a target price of £5.542m.

·  The overall backlog maintenance programme including detailed cost estimates, phasing and an evidenced link to backlog reduction to be available for approval at the December 2013 Board meeting.

Executive Sponsors

Alan Gray

Director of Finance

Graeme Smith

Director of Modernisation

13 September 2013

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