Wednesday 20 November 2024
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Hospital modernisation remains "essential"

Hospital modernisation remains

Wednesday 20 November 2024

Hospital modernisation remains "essential"

Wednesday 20 November 2024


The Health President has pre-empted any attempt to de-fund phase two of the hospital modernisation programme by reminding the States that the wok is "not just about cost".

Giving his quarterly update to the States this morning, Deputy Al Brouard explained that Phase 1 has "largely been built".

"This includes the new build Critical Care Unit (CCU) and Post Anaesthetic Care Unit (PACU) facilities, as well as the new electrical infrastructure upgrades," he said.

"There have been several opportunities for our clinical teams, senior leaders and our colleagues in the Policy & Resources Committee to tour the new facilities, with the feedback received being overwhelmingly positive."

Looking to the future and the work on Phase 2 that was approved through last year's States debate on the island's capital projects, Deputy Brouard reflected on the 2025 Budget debate earlier this month which left some of those capital projects unfunded.

"With the budget debate fresh in our minds, we must remember that this is not just about cost; the dialogue must be about the service resilience that these new facilities will bring to our community over at least the next 30 years.

"We need to continue to find more sustainable ways to deliver the range of health and social care services that will be needed for our ageing population. Phase 2 remains fundamental to that process. Without it, islanders will wait longer for essential procedures; we'll have to increasingly look to off-Island providers for services not without cost; without it staff will need to meet increasing demands in facilities that are lacking, health outcomes will be affected, and no doubt we'd be storing up problems for future generations.

"The Committee is unwavering in its commitment to deliver the benefits of Phase 2 in a fiscally prudent way and will continue to keep States Members updated."

The new Critical Care Unit at the Princess Elizabeth Hospital

Pictured: The new critical care unit at the hospital, developed under Phase 1 of the PEH modernisation plans, opened earlier this year.

The projected cost of work under Phase 2 of the hospital modernisation programme has already exceeded its approved budget, by at least £30m.

States members had backed funding for the hospital project in October 2023, using cash from the capital reserve, up to £90m from a savings pot known as the Health Reserve, and some additional borrowing - but only for a maximum spend of £120m.

Earlier this year, Deputy Brouard had to reveal that civil servants had known the project cost estimates were out of date when that spending was approved. Political members of HSC found out late last year, with the rest of the States and the public at large being informed a few months later.

Work has continued since with further meetings held and planned with P&R to push ahead with the hospital modernisation.

"As I advised the Assembly in May this year, the Committee commissioned an independent firm to review its plans for this important next Phase of development of modernising our hospital facilities," said Deputy Brouard.

"The information provided by this value-engineering exercise is going to be hugely beneficial in understanding how we can best move forward in a fully informed way. We are currently clarifying a number of points so that we can find a pathway through that will deliver the facilities and benefits afforded by Phase 2, aligned as closely as possible with needs, expectations and budget. The outputs of this exercise to date have been positive. However, as with all major capital projects, we need to do further due diligence and we're meeting with the Policy & Resources Committee again shortly to continue our discussions and determine next steps."

An emergency budget is slated for debate in early 2025, after the States rejected P&R's proposed temporary 10% income tax increase.

That was intended to plug an income shortfall in the immediate short term, bringing in up to £34m per year to fund public expenditure.

Without that money, P&R has warned that capital projects are at risk as the island's public spending must be reined in.

READ MORE...

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