New Women’s and Children's Hospital would cost at least $1.9 billion, preliminary report shows

The cost of the new Women’s and Children’s Hospital – to be built next to the RAH – has been estimated, and it’s even more than previously projected.

• What else we know about the new Women’s and Children’s Hospital

The planned new Women’s and Children’s Hospital would cost at least $1.9bn, a report by the taskforce investigating preliminary costs shows.

The April 2019 report, obtained by The Advertiser, has been kept under wraps while a final business case with full costings is prepared.

The price tag is even bigger than the $1.7bn to $1.8bn suggested by documents previously released under Freedom of Information laws.

The report says the number of overnight beds will be about the same as the existing WCH – its website says it has more than 350 in total – and there would be an increase in birthing suites, operating theatres and a larger paediatric emergency department.

The government has previously said the new WCH, to be built next to the Royal Adelaide Hospital, would have 330 beds. Even at 350 beds, the cost would be $5.4m a bed, far in excess of the $3m a bed at the $2.4bn RAH.

Artist impression showing the location of the new Women's and Children's Hospital next to the RAH.

The new private Calvary Adelaide Hospital was built for just $1m a bed.

The report, presented to Health Minister Stephen Wade on April 11, 2019, noted cost savings might be made on the preliminary estimates.

It states that a submission that was due to go to cabinet on May 6, 2019 would note that “further work will be undertaken in the next 12 months with a view to reducing costs”.

It says this needed to be done in consultation with WCH clinicians, who would be integral in seeing how services shared with the adjoining RAH could be made more efficient.

The preliminary estimate for the new WCH comprises $1.14bn for construction and equipping the hospital in 2019-20 costs (including $100m for IT services alone); $195m for site preparations and a four-level underground carpark for 600 cars; $241m for “cost escalation to project completion”; and $316m in contingencies.

The costing is based on 100,000sq m of floorspace, plus carparking and unenclosed space, taking it to a total of 174,150sq m.

The new Women's and Children's Hospital would cost at least $1.9 billion, the preliminary report suggests.

Mr Wade said the preliminary costs were speculative.

“The hospital model, design, functionality, and site investigations for engineering and construction are still being developed,” he said.

“SA has paid dearly for the litany of mistakes made by Labor during construction of the Royal Adelaide Hospital, which led to a $660m cost blowout, a 17-month delay, many design flaws and a lack of consultation with key stakeholders.”

He said in contrast, the Marshall government had created 93 consultation groups to make sure the new WCH was done right.

The build would create thousands of jobs while ensuring world-class healthcare, he said.

The government has committed to a $550m downpayment on the project.

Opposition health spokesman Chris Picton attacked the government for secrecy, pointing to a long FoI battle.

Mr Picton said the government must explain why the cost for each bed for the new WCH was so much higher than for the RAH.

“The government is dragging its feet on the project and that is just adding to the cost,” he said. “The final business case is well over a year delayed.

“The opening date has already been delayed up to two years, and looks likely to face even more setbacks.”