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Public Private Partnerships

 

Public Private Partnerships - The new Royal Children's Hospital project

The new RCH is being delivered as a public private partnership (PPP) under the State Government's Partnerships Victoria model. The Partnerships Victoria policy captures the best skills and services of Government and combines them with private sector expertise in designing, financing, building and maintaining large infrastructure projects. Projects only proceed as PPPs if they demonstrate they can deliver better value for money compared with traditional State procurement, including higher quality and better maintained infrastructure.

A public private partnership is a partnership between the public and private sectors. Under a PPP the Government contracts a private sector consortium to design, build and finance State infrastructure (such as hospitals, roads or prisons) as well as maintain that infrastructure and provide other services. Strict performance standards and accountabilities ensure a high level of service.

The Children's Health Partnership will be responsible for designing, building and then maintaining the new RCH building for 25 years. This means the hospital will be maintained in ‘as new' condition with no further investment (other than general funding for staffing and beds) required by the State Government. The Children’s Health Partnership is responsible for maintaining the hospital’s building infrastructure, security, carparking, grounds, furniture and equipment (excluding medical and some IT equipment).

The Department of Health, through RCH, will continue to operate all health services.

Public Sector (RCH on behalf of the State) is responsible for:


  • operating the hospital/core medical services
  • staffing
  • teaching, training and research.

Private sector (Children's Health Partnership) is responsible for:
  • design
  • construction
  • finance
  • maintenance.

To find out more about PPPs, visit www.partnerships.vic.gov.au

 
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