Sangster report reveals Toowoomba Hospital blowout to $1.98bn

A much-anticipated review into the state’s hospital expansion program has delivered its first bitter pill with another billion-dollar blowout.

Health Minister Tim Nicholls in Parliament

The first glimpse into a review of the state’s multibillion-dollar hospital expansion program has revealed upgrades to a major hospital were botched and undeliverable.

The much-anticipated Sangster review has delivered the first bitter pill by uncovering that the new Toowoomba Hospital has major design and operational flaws and basic requirements had not been budgeted.

The build has blown out from $1.3bn to $1.98bn.

As Health Minister Tim Nicholls has announced that the full report will be delivered on April 23, after being approved by Cabinet, his office teases that major issues with many hospitals will be ­revealed.

“Labor left the Capital Expansion Program on life-support, the Crisafulli government is saving our hospitals and delivering more hospital beds for Queenslanders sooner,” Mr Nicholls said.

“Under Labor the new Toowoomba Hospital was undeliverable – it wasn’t budgeted for and was botched with major design and operational flaws, but we are working through the challenges to save it, and it will be delivered by the LNP.”

The list of problems with the delivery of the Toowoomba Hospital is extensive including the plan to keep the old ­hospital operating after the new hospital opened, instead of delivering a new hospital to ­replace the existing aged ­facility.

An artist’s impression of the new Toowoomba Hospital precinct

The review found the 1960s-era hospital is an “end of useful life asset”.

Also under the plan the existing hospital would have two floors operating, while the rest of the building is not used.

Despite the mothballing of four floors, keeping the rest of the existing hospital operating would cost Queenslanders an extra $300 to $400 million each year and this was not ­budgeted.

There was no consideration for what capital works may be required on the old site to keep it safe and operational, as it is kept running beyond end of life.

Basic operating requirements for the new hospital hadn’t been budgeted or scoped, including the cost of electronic medical records systems. If electronic medical records aren’t budgeted for (around $60m across old and new hospitals), the hospital would need to be redesigned (for paper record systems and storage).

“We’ll be releasing our delivery plan April 23 and that delivery plan is about fixing the mistakes in Labor’s failed capacity expansion program. That program has failed to deliver and was undeliverable in terms of the beds that are going to be necessary for Queensland,” Mr Nicholls said.

In December last year Mr Nicholls announced the independent review of Queensland Health’s Capacity Expansion Program.

Klok Advisory managing director Sam Sangster was appointed to conduct the review.

Mr Sangster has extensive experience advising on infrastructure project delivery and governance.

Construction continues on the new Toowoomba Hospital

Originally published as Sangster report reveals Toowoomba Hospital blowout to $1.98bn