Victorian Heart Hospital suffers another $100m blowout

EXCLUSIVE: THE cost of the Victorian Heart Hospital has blown out by another $100 million, creating a huge black hole for the Andrews Government.

The cost of the Victorian Heart Hospital has blown out by another $100 million. Generic picture: iStock

THE cost of the Victorian Heart Hospital has blown out by another $100 million, creating a huge black hole for the Andrews Government as it struggles to find private backers to pay for the project.

Tender documents seen by the Herald Sun reveal its cost has jumped to $600 million for the full project, or $450 million for a scaled-back version.

The documents also reveal the Andrews Government is no closer to securing private, philanthropic or federal ­government support for the specialist Clayton hospital — an Australia-first — leaving it up to $450 million short.

Opposition health spokeswoman Mary Wooldridge compared the Victorian Heart Hospital to Labor’s myki and desalination plant projects, saying it had been “botched”.

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Opposition health spokeswoman Mary Wooldridge says the Victorian Heart Hospital project has been “botched”. Picture: Steve Tanner

“Daniel Andrews has broken all his promises on this hospital with no plan, no time frame and a massive cost blowout that taxpayers will have to pick up,” she said.

“It’s no ­wonder so many Victorians are missing out on the health care they need when the ­Premier is wasting taxpayer money through his gross ­mismanagement.”

When first promised by Mr Andrews in November 2014, the Victorian Heart Hospital was priced at between $400 million and $450 million, with “project partners” tipping in $300 million to $350 million.

But tender documents ­released by the Health Department this week show the cost has blown out, stating: “The likely total expected investment is $450-$600 million.”

While the Victorian government has set aside its $150 million share and Mon­ash ­University has pledged up to $70 million as well as land at Clayton, the government is yet to attract other investment.

Premier Daniel Andrews’ government is no closer to securing private, philanthropic or federal ­government support for the Victorian Heart Hospital. Picture: AAP/Joe Castro

The tender documents state that although securing the outstanding funding remains a priority, the government wanted the project pushed ahead, with “hold points” during its development allowing it to alter plans in case its funding situation changed.

“The Victorian government has instructed the project partners to proceed with commissioning design consultants for the total project scope with provision for hold points at various stages ... to facilitate alternative procurement strategies,” the documents state.

“For the avoidance of doubt, a decision on the procurement strategy has not been made and proceeding with the design process does not imply that any particular strategy will be adopted.”

The Herald Sun understands a scaled-back $450 million version of the project would see a floor deleted from the planned 194-bed hospital, reducing its size by 64 beds and two catheterisation labs.

Minister for Health Jill Hennessy said securing further funding was “top priority”.

“As the only dedicated cardiac hospital in the country, it is a project of national significance — that’s why the federal government should also put in its fair share,” she said.

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