Financial Case. The financial case needs to demonstrate that the 10 year strategic vision and associated programme of investment and change is affordable in capital and revenue terms. As part of the Strategic Assessment for the Caring for Ayrshire programme there was an indicative view on the overall anticipated capital investment costs in delivering that whole system approach which suggested a requirement for £750m of capital investment over that 10 year period. It is recognised that this estimate was based on the situation at a point in time and following the development of our future vision on models of care and the strategic aims of delivering health, care and wellbeing services across Ayrshire and Arran the likelihood is that this cost will be further refined as we progress through our remaining chapters. It is our aim that the programme can be delivered within the existing revenue resources of all parties. It is our belief that the strategic vision and associated programme will allow us to use existing resources more effectively, however there is a recognition that significant redistribution of resources will be required to reflect the future balance of health and care delivery. For example, any new inpatient hospital provision will have to have more single rooms which have a larger footprint than current wards. The resulting increased property related costs will need to be mitigated by a fewer number of inpatient beds than are available currently. This would be facilitated by enhanced community services minimising the requirement for inpatient stays where possible. Community services will therefore be sequenced first so as to change the pathway for patients.
Financial Case. The purpose of the Financial Case within this Initial Agreement (IA) is to consider the affordability and financial consequences of the Project. It sets this out by considering: • A statement of the organisation’s financial situation in relation to the proposal, including confirmation of its affordability. • Identification of resources proposed for the project, including their suitability and availability. • Any capital or revenue constraints on the project. • Description of any financial contributions to be made by external partners, and the current status of that commitment The preferred service solution as set out in the Economic Case is: • Option 3: to build a new integrated Community Hub for the delivery of health and care services at a suitable site in the Central locality.
Financial Case. 5.2.1. Introduction This chapter: • Sets out the estimated costs of the proposed development • Identifies any capital or revenue constraints on the project • Summarises the overall affordability
Financial Case. The planning assumption is that funding for this project will be via an ear-marked Capital Allocation from the Scottish Government Capital Investment Group to support a capital procured solution. Any revenue costs associated with this project such as on-going support and maintenance and supply of consumables will be funded via the Service’s core revenue budget in the relevant financial years. The capital funding for this project will be required during financial years 2020/21 and 2021/22.
Financial Case. The Initial Agreement is an early stage in the overall development of a business case for the project therefore, in accordance with SCIM guidance, these costs are indicative at this stage.
Financial Case. 7.8.1 The Board has received conditional approval that a replacement Woodside Health Centre would be funded via the West of Scotland Hub initiative, subject to approval through the business case process.
Financial Case. 5.1 Background to the development of the financial model This section summarises the savings and investment projections which are forecast from the implementation of the Xxxxx Valley Shared Support Service (CVSSS). The financial spreadsheet model from which these numbers have been generated has also been made available to all participating Councils, providing them with access to further detailed information. The financial model is underpinned by a number of assumptions which are summarised in Section 5.5. The two scenarios referred to in Section 4.4.1 relating to the speed by which services would transferred to the CVSSS from participating Councils have also been used to provide the upper and lower range of savings shown in the tables and graphs below. The Finance Directors/Heads of Finance across each of the participating Councils have been regularly briefed on the development of the financial model and the assumptions used within it. The spreadsheet model was made available to each Council to enable detailed scrutiny during its development and it has been adjusted to reflect the feedback arising from this scrutiny. As a result of this regular engagement, the figures produced by the model and presented within the business case are deemed sufficiently robust and prudent by the Finance Directors. Rather than create a range of sensitivity forecasts on these figures, it has agreed that it was more appropriate for each Council to apply their own sensitivity adjustments when considering the projected investment costs and savings to enable them to adopt their normal risk based assessment approaches.
Financial Case. The purpose of this section is to set out the indicative financial implications of the shortlisted options. Detailed analysis of the financial case will take place at OBC stage. • Capital & Revenue Constraints Funding for fees to allow completion of option appraisal work to OBC stage will be provided by the West of Scotland Health Boards and will be accessed as required via the Directors of Finance.
Financial Case. The Board has received conditional approval that a replacement Maryhill Health Centre would be funded via the West of Scotland Hub initiative, subject to approval through the business case process. The Board has made provision within its capital resource limit for this project dependant on confirmation of the Hub funding. The Board has experience of delivering similar type projects having recently completed the building of new Health Centres at Renfrew and Barrhead underway. The Glasgow City CHP committee wholeheartedly supports the plan to improve the healthcare facilities available to the local population.
Financial Case. Indicative costs have been prepared for each short-listed implementation option. These account for the clinical service solutions and also include the “worst case” scenario for the CHP-wide service options which is likely to be complete replacement of the accommodation without service re-design. As such the costs are a conservative estimate of the capital required to replace the services. An estimate for CMHT base costs has been included. During the OBC stage a functional suitability/space utilisation exercise will be carried out in each locality to determine if any investment is required.
