New Royal Adelaide Hospital about to cost $1 million a day while empty
IT’S big, shiny and new, and now the $2.3 billion new RAH is about to cost taxpayers $1m a day while empty. So why are we paying for a hospital with no patients?
- New RAH technical completion announced
- We taste test the new RAH menu
- Overdue elective surgery lists 'massaged' by category reclassifications
COMMERCIAL acceptance of the new Royal Adelaide Hospital is “imminent”, triggering repayments of more than $1 million a day even while the $2.3 billion building has no patients.
The 90-day testing phase after technical completion theoretically ended yesterday but Health Minister Jack Snelling said there were still aspects to sign off and he would take advice today about finalising commercial acceptance.
He said the acceptance is “imminent”, indicating taxpayers will spend almost $100 million on the building before it gets its first patient, with the new RAH due to open on September 5 — about 17 months late.
“I’ve always said commercial acceptance would be in mid-June,” Mr Snelling said. “I can tell you now commercial acceptance is certainly imminent but the important thing is it is not going to change the moving date for the hospital and I think that is what most people care about.
“I can reassure the people of South Australia that nothing at this stage will prevent us moving into the new hospital on September 5.”
Under the terms of the 35-year contract, payments to consortium SA Health Partnership (SAHP) start from commercial acceptance of the hospital by the State Government, regardless of whether it is open for patients.
Opposition health spokesman Stephen Wade said taxpayers face paying almost $100 million before the hospital has any patients.
“The Government is scheduled to take control of the new RAH site and start paying $1 million a day despite the fact the hospital will stay empty until at least September 5,” Mr Wade said.
“Up to today, we are $640 million over budget, and by the time the hospital is scheduled to open, it will be 17 months late.’’
Mr Wade repeated calls for the opening to be delayed due to the flu season, saying notifications are running at double the five-year average and the opening in September represents a risk to patient safety.
Mr Snelling is relaxed about the $1 million a day payments prior to the hospital opening, noting it is “an absolute hive of activity” as SA Health prepares for the shift.
The move to the new RAH will involve a ramp down of elective surgery in the six weeks prior to the move, as the existing RAH is emptied of most patients and space is made available in other hospitals for urgent cases.
The State Government entered into an agreement with SAHP in 2011 for the delivery of the new RAH under a public-private partnership.
Under the deal, SAHP designed, financed, built and will maintain the hospital and supply a range of non-clinical support services until 2046 for more than $1 million a day.
SA Health owns the facility and will provide all core clinical services, staffing, teaching, training and research.
