This case study gives a brief detail on the New Royal Adelaide Hospital (NRAH), which was approved by Cabinet in April 2007 and the construction was commenced in the late 2011 which was completed in November 2016. This project was delivered by State and SA Health partnership Pty Ltd (Project Co) which is Public Private Partnership (PPP) proponent in this project. This project is the largest social foundation ever embraced by the State.
The objective of the NRAH was
• Initiating a social change through health care staff.
• Promoting innovation in healthcare.
• Providing and maximising effective and efficient design.
• Providing value for money.
• Achieving the project through eco-friendly means.
The key features of the NRAH includes 800 beds, 40 technical suites, efficient transportation through automated guided vehicles, Standardised single inpatients room with individual ensuites and electronically tagged biomedical and other clinical equipment’s.
According to the Auditor-General report in 2015 the total project budget for NRAH was approximately $2.3 billion, including $1.85 billion of Project Co for design and construction and $417 million of State for providing clinical service and equipment for the hospital.
Also, the state and Project Co had a Contract agreement where Project Co is required to return the hospital in June 2046 (approximately 30 years) and site back to the State in accordance with the Project Agreement. (Government of South Australia, 2015).
Apart from risk the positive outcomes from whole of life of the procurement are
• The Environmental benefit: where it minimises the wastes, consumption of power and water and unnecessary travel to obtain services
• The usage of PPP method which can easily resolve problems and relocate governments fund and utilise in community with no tax incremental in long duration payments.
• Economic benefits: It saved both capital and resources when life cycle cost is considered.
• Health related benefit: It improved the quality of life.
Government of South Australia, Auditor General’s Department. (2015). Retrieved from:https://www.audit.sa.gov.au/publications/annual-reports/2015-reports
Sharma, M., & Bindal, A. (2014). Public-Private Partnership. International Journal of Research (IJR), 1(7), 1270-1274.