NHS GRAMPIAN

Moray Lifescience Centre

1.Introduction

1.1The case for the Moray Lifescience Centre has been developed over a three year period.

1.2Funding is in place to build the centre subject to a contribution from the Grampian NHS Board. This report details the prospect for NHS Grampian to grant-fund part of the cost of the new building, which can be delivered within two years.

2.Aim

2.1To realise the delivery of the Moray Lifescience Centre.

3.Discussion

3.1Background

3.1.1.The need for a Lifescience Centre came out of the First Minister’s Taskforce Review of the Moray economy, Moray 2020

3.1.2.A proposal for a Lifescience Centre in Moray was considered by the NHS Grampian Board at a seminar in September 2009, and the Board was supportive of the proposal, subject to the appropriate approval mechanisms.

3.1.3.The centre will focus education in health and care activity to support the work of NHS Grampian,MorayCollege and Moray Community Health and Social Care Partnership.

3.1.4.MorayCollege will own the centre with shared use between the college,health and care professionals, industry partners and the public.

3.1.5.The Lifescience Centre was included in the NHSG Capital Plan (Appendix 1 Lifescience Centre Moray Business Case 2010).

3.1.6.As a consequence of the Scottish Government’s reduction in allocation of capital funds NHS Grampian reprioritised its capital spend in April 2010. The Lifescience Centre scored a low priority when set against the criteria for investment in clinical buildings and maintenance of infrastructure.

3.1.7An alternative route of funding has is being proposed at 35% of the original sum in the Capital Plan using a combination of Moray endowments, capital under spend for this financial year and proceeds from an NHS Grampian Endowment Fund property sale.

3.2Economic Considerations

3.2.1The Moray economy is overly dependent on Ministry of Defence bases at RAF Lossiemouth and RAF Kinloss (circa 6,500 jobs, 7% of the population and £6m contribution to the economy). (Appendix 2 outlines the economic circumstance of Moray).

3.2.2The UK Government is reviewing MOD funding and service configuration and will announce changes in late October 2010.

3.2.3The Moray Community Planning Partnership has been advised by the Government to plan on the basis of the worst case scenario i.e, both bases closing. This would mean Scotland’s biggest single job loss since the closure of Ravenscraig nearly two decades ago.

3.2.4The Lifescience Centre will promote knowledge economy activity and be part of the economic strategy for the area.

3.3Function

3.3.1The centre will provide much needed space for training including locally delivered continuing professional development, in-house training, Protected Learning Time, patient education and workshops supporting contemporary health and care themes.

3.3.2The centre will place a significant emphasis on public participation and co-creation of health and care services. The building will be designed to support learning around the themes of self-care and long-term conditions. This will support NHS Grampian’s strategic theme of Shifting the Balance of Care and facilitate Healthfit.

3.3.3Relevant lifescience initiatives will be pursued between academics, clinicians and industry. Presently these include digital health, long-term conditions management and women’s health.

3.3.4A clinical skills area will be provided to NES specifications.

3.3.5The focus of the work of the centre will be to support health and care staff in providing locally delivered learning opportunities that help staff keep pace with changes in practice and sustain service delivery.

3.4Funding and Timescales

3.4.1The building will be procured and owned by MorayCollege.

3.4.2Highlands and Islands Enterprise, NHS Grampian, European Community Funding and College funding will be used to construct the building. The Moray Council is considering its contribution at its meeting on 5 October 2010.

3.4.3The revenue costs will be borne by MorayCollege with a financial model in place to secure income to support running costs.

3.4.4NHS Grampian will capital grant funds to MorayCollege.

3.4.5The capital funding package is presently summarised as:

European Funding£2.4m

MorayCollege Funding£1.1m

HIE£1.5m

NHS Grampian£1.0m

TOTAL£6.0m

3.4.6The NHS Grampian funding is proposed to be derived from:

Underspend on ChalmersHospital Capital Budget£300K

Gain on sale of 403 King Street, Aberdeen£500K

Moray CHSCP Endowments£200K

TOTAL£1m

3.4.7The estimated time for completion of the building is Autumn 2012.

3.4.8The funding mechanisms have been scrutinised by relevant financial advisors and are in keeping with fiscal policy and extant governance arrangements.

4.Key Risks

4.1Delivery of NHS Grampian’s strategic objectives relating to improving health and reducing inequalities and delivering safe, effective and timely care in the West Grampian region could be adversely affected by not delivering the Lifescience Centre.

4.2The operational relationship in the use of the facilities between NHSGrampian and MorayCollege may prevent provision of a capital grant.

5.Conclusion

5.1There is an opportunity for NHS Grampian to contribute £1m towards the Moray Lifescience Centre. This will secure an investment of £6m in Grampian. The centre will bring similar benefits to the Suttie Centre to the population in West Grampian.

5.2The centre will provide good training space for health care staff within a modern context of Lifescience endeavour and public participation.

5.3The Moray economy is under considerable strain and the Lifescience Centre is one of several initiatives to rebalance activity into a sustainable sector.

6.Recommendation

6.1The GrampianNHS Board is asked to:

Agree to provide a grant of £1m towards the cost of the Lifescience Centre.

Dr Roelf Dijkhuizen

Medical Director

23 September 2010

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