The Tasmanian Government is being urged to call for tenders to build a Hobart hospital, rather than accept the first offer.
The developer behind a $2.4 billion hospital and hotel project on the waterfront has detailed the project on the eve of a government decision about the Royal Hobart Hospital’s future.
It is expected the Government will announce tomorrow whether it will continue to pour money into the Royal’s $585 million redevelopment in central Hobart.
Federal independent MP Andrew Wilkie secured $340 million to redevelop the Royal at its existing site.
He wants more economic details about a private proposal for a new hospital and hotel development at the Cenotaph.
“There could well be better ideas out there, it is risky for the State Government to respond favourably to an unsolicited bid from one proponent,” he said.
Private consortium SolutionsWon has given more details about the greenfield project which would be built into the side of the hill in front of cenotaph.
Director Dean Coleman said the $780 million 500-bed hospital and “medi-hotel” had broad support, including from the RSL.
The five-star hotel would offer 320 beds, 120 of which would be dedicated to the hospital.
Also on site would be consulting suites and infrastructure supporting the precinct.
“We offer an improvement in healthcare, our whole project is about healthcare delivery process where unfortunately the Royal Hobart redevelopment has become about bricks and mortar,” he said.
“It’s been a construction site for last 60s years, it’s always in flux.”
More financial details revealed
The group estimated the hospital would save the Government $75 million a year in operating costs.
The project was being underwritten by healthcare finance provider Plenary Group, which had built several new hospitals around Australia in the past four years.
Mr Coleman said the developers had been “open and transparent” with the Government about the financial details, but was seeking more engagement.
“Our project and the financials, we’ve been very open and transparent so the Government has access to all of our numbers, our financial models,” he said.
“[They’ve] been reviewing the process but they are not really understanding the financial aspects.
“From Treasury and the Department of Health side, it’s difficult to get engagement because everyone is looking at the (Royal’s) redevelopment and tyring to save that.”
Mr Coleman said people had not understood the financial aspects of the project and the concept of using hotels as part of hospital accommodation.
He said, for example, it was a common practice interstate to move new mothers out of a maternity ward to a hotel.
“The cost of non-acute bed within the Royal Hobart Hospital is $1,865 per night, the cost of a hotel bed is $260 … that’s $1,500 in savings.”
“So when you have 120 beds, that’s about $50 million a year.”
The proponents said they had the backing of the RSL and the regatta organisation for the project which would incorporate a war memorial and museum.
Mr Coleman said he welcomed the support shown by the state’s medical professionals and opposition parties.