Overall Affordability. 5.1. NHS Lothian operates with a delegated authority over capital schemes of less than £5m. As the estimated costs for this project are above that delegated limit, the project will be referred to the Scottish Government Capital Investment Group for approval and specific funding of capital costs. Capital affordability will be determined through prioritisation within the Scottish Government capital programme, with availability of specific capital funding a key constraint.
5.2. Should the IA be approved, revenue affordability will be assessed in detail at the OBC stage following a full review of revenue implications.
Overall Affordability. 7.11.1 It is anticipated that the recurring revenue funding from the current facilities, which has been identified as £290k, will be made available to support the new facility if the IA is implemented.
7.11.2 Further development of the revenue implications will be undertaken in the development of the OBC, including energy efficiencies and reduced maintenance arising from a new build.
7.11.3 It is also expected that by implementation of the proposals contained in the IA, Non Recurring costs in respect of significant backlog maintenance will be avoided. Backlog associated with the ‘Do Minimum’ and to make the premises fit for purpose has been identified as £900K in the NHS Greater Glasgow & Xxxxx Property and Asset Management Strategy 2012-2016. Figure based on a BCIS refurbishment m2 rate.
7.11.4 The figures within the ‘Do Minimum’ option on the indicative capital cost table above exclude fees, decant, double running and other enabling costs.
Overall Affordability. Given the availability of capital funding at a national level, a revenue finance solution is the way to deliver this project. Initial modelling to review the affordability of the first phase indicates that it would be affordable in revenue terms, as the savings arising from bed reductions would offset the impact of the unitary charge. A contribution from the Scottish Government towards the unitary charge has been assumed based on the letter dated 22nd March 2011 sent to NHS Board Chief Executives from Acting Director-General Health and Social Care and Chief Executive NHS Scotland, Xxxxx Xxxxxx. Further phases will be progressed when affordability is tested through the Outline Business Case process.
Overall Affordability. The capital costs detailed above are predicted to be funded through traditional capital funding through a specific allocation from the Scottish Government. This project has been prioritised by NHS Lothian and the West Lothian Health and Social Care Partnership. The estimated capital costs noted above are included in the NHS Lothian Property and Asset Five Year Investment Plan. Increases in facilities costs will be met proportionally by the services using the space. It is therefore anticipated that increases will be met by GP Services (reimbursed via GMS) and WL HSCP for non-GP related element – exact splits are yet to be concluded. Depreciation will be funded by the existing NHS Lothian Depreciation budget. Service Change Planning Strategic Assessment Initial Agreement Outline Business Case Final BusinessCase Implementation Phase
Overall Affordability. Recurring revenue funding of £480k has been identified from the current resources to support the running of the new facility if the IA is implemented. Further examination of efficiencies and revenue release will be undertaken in the development of the OBC. This will examine: • Efficiencies from the provision of integrated services • Reduced running cost of energy efficient facility • Reduced cleaning cost within a modern building • Reduced costs in respect of maintenance within hard facilities management • Efficiencies in non clinical support Non recurring costs in respect of significant backlog maintenance will be avoided. Backlog associated with ‘Do Minimum‘ & to make premises fit for purpose has been identified as £1-£1.2m in the NHS Greater Glasgow & Xxxxx Property & Asset Management Strategy 2012 -2016 - figure based on a BCIS refurbishment m2 rate. The figures within the “Do Minimum” option on the indicative capital cost table above excludes fees, decant, double running and other enabling costs.
