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Health fights to keep hospital modernisation programme “on track”

Health fights to keep hospital modernisation programme “on track”

Wednesday 11 October 2023

Health fights to keep hospital modernisation programme “on track”

Wednesday 11 October 2023


A fresh attempt has been made to try and ensure the second phase of the Hospital Modernisation Programme goes ahead as planned.

The Committee for Health and Social Care (HSC) has submitted an amendment to the upcoming Funding and Investment Plan in an attempt to make sure the redevelopment of the Princess Elizabeth Hospital goes ahead regardless of which of P&R’s options are chosen.

The Funding and Investment Plan will offer deputies three scenariosfor future funding of capital projects; the first scenario is a reduced capital portfolio with no borrowing or GST, the second is still a reduced capital portfolio but with £200million of borrowing, and scenario three would see a fuller capital portfolio funded through a combination of GST, borrowing and social security reform. 

Scenario 1 is the only option that would leave the second phase of the Hospital Modernisation Programme as financially impossible. 

HSC’s amendment therefore inserts Phase 2 into Scenario 1 as ‘do as planned’ with four further options as to how to fund it. 

Option 1: New borrowing 

Option 2: New borrowing bolstered by a maximum of £46million from the Guernsey Health Reserve 

Option 3: New borrowing bolstered by a maximum of £90million from the Guernsey Health Reserve 

Option 4: Utilise maximum of £90million from Guernsey Health Reserve supplemented by “the General Revenue reserve and/or through the use of funding to be set aside for capital expenditure in future years” 

The options are laid out by HSC in order of preference. 

“Phase 2 will deliver essential facilities to respond to the needs of the ageing demographic, to meet future demands in high pressure areas and will provide for greater resilience of acute care services,” said the President of HSC, Deputy Al Brouard. 

“The development will also help to drive more efficient working practices, enable better care pathways to be developed and support the mitigation and management of key clinical risks. It is important for Phase 2 to proceed without further delay.  

“It would be preferable not to utilise the Guernsey Health Reserve to fund the Our Hospital Modernisation Programme – Phase 2, but the Committee consider it essential for Phase 2 to be incorporated into Scenario 1 and for all possible avenues in terms of funding to be explored at this stage.” 

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