Essendon Fields Private Hospital - EF.com.au€¦ · Expression of Interest – Essendon Fields...

Essendon Fields Private Hospital

Request for Expression of Interest

30 June 2016

30 June 2016

Expression of Interest – Essendon Fields Private Hospital

Essendon Fields invites expressions of interest from hospital operators to partner together in delivering a private hospital and specialist centre at Essendon Fields.

The unique 305 hectare site has unparalleled location, connectivity, exposure and amenities. The masterplan development at Essendon Fields has seen the creation of a truly unique business environment which is located just 10 kilometres from Melbourne’s Central Business District.

Essendon Fields is a joint venture between Linfox Group and Beck Property. The attention to detail on behalf of the owners is evidenced by the six centres of excellence created at Essendon Fields.

The site’s strategic advantages support the development of a new hospital project:

�� Location and demand: ideally located to service the fast growing north western region

�� Access: easy access to CBD, major arterial roads, public transport and ample car parking on site. Five minutes to Melbourne Airport and regional flight links from Essendon Airport.

�� Visibility: high visibility site location with 140,000 cars passing the hospital site each day

�� Capital light: all building and infrastructure costs funded and owned by Essendon Fields

�� Flexibility: the site, size and staging can all be flexed to achieve an optimal outcome

�� Positive economic impact: creation of jobs and economic value for the community

We welcome your expressions of interest to participate in the next phase of Essendon Fields and the development of a new hospital.

Yours sincerely Essendon Fields

Chris Cowan Chief Executive Officer

Essendon Fields HouseLevel 2, 7 English St Essendon Fields VIC 3041 +61 3 9948 9400ef.com.au

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Expression of Interest Essendon Fields Private Hospital

Table of contents

Glossary of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1.1 Purpose of this Invitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1.2 Overview of the Procurement Process and Indicative Timing. . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1.3 Project Team. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1.4 Role of Essendon Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2 Project Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.1 Vision for the Hospital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.2 Project Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.3 Economic Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2.4 Essendon Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.5 Strategic Location Advantages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2.6 Market Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2.7 Site Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

2.8 Hospital Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

3 Project Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3.2 Role of Hospital Operator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3.3 Planning Regime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

3.4 Hospital Design Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

3.5 Preliminary Staging Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

3.6 Services – Clinical and Non-Clinical . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

3.7 Car Parking and Traffic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

3.8 Regulatory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

4 Commercial Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

4.1 Commercial Principles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

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5 Content and Evaluation of EOIs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

5.1 Evaluation Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

6 Procurement Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

6.1 Overview of the Procurement Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

6.2 Probity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

7 EOI Procedural Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

7.1 Enquiries and Clarification Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

7.2 Individual Information Session . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

7.3 Lodgement Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

7.4 Closing Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

7.5 Submission Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

7.6 Non-conforming EOI Submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

7.7 Proprietary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

7.8 Notifications and Debriefings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Returnable Schedules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Returnable Schedule A – Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Returnable Schedule B – Respondent Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Returnable Schedule C – Response Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Appendix A: Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Appendix B: Terms and Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

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Glossary of Terms

Associate – Any person associated with the relevant person including any officer, employee, contractor or agent or related body corporate, as defined in the Corporations Act 2001 (Cth)

EOI – Expression of Interest submitted by a Respondent in response to this Invitation

Essendon Fields – Essendon Fields Pty Ltd, Essendon Airport Pty Ltd

HOA – Heads of agreement

Hospital Operator (or “Operator”) – organisation selected to operate the Private Hospital at the Essendon Fields site

Respondents – invited firms responding to the EOI to act as Hospital Operator

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1. Introduction

1.1 �Purpose of this Invitation

The purpose of this Invitation is to:

�� invite prospective Respondents to submit an EOI;

�� provide details and information concerning the Project to prospective Respondents;

�� set out:

– the criteria against which EOIs will be evaluated;

– the submission requirements for EOIs;

– the terms and conditions for the Procurement Process; and

�� elicit information from Respondents in respect of certain aspects of the proposal.

1.2 �Overview of the Procurement Process and Indicative Timing

The procurement process will be conducted in accordance with the procurement guidelines, following the proposed indicative timetable:

Outcome Target Date

Release EOI 30 June 2016

EOI Close 19 August 2016

Appoint Preferred Operator October 2016

Design and Construction 2017 and 2018

Stage 1 Opening 2019

Essendon Fields will endeavour to respond to all queries regarding the opportunity and will conduct individual information sessions with the respondents who are eager to participate in the procurement process.

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1.3 �Project Team

Members of the Project Team are:

Role Stakeholder

Commercial and financial advisor PwC

Health architects Billard Leece Partnership

Health and project advisorMatthew Tymms – M&J Healthcare Advisory

Legal advisor TBC

1.4 �Role of Essendon Fields

The proposed private hospital will be developed and owned by Essendon Fields.

The Essendon Fields development team has extensive experience in undertaking successful projects across a range of asset classes.

Essendon Fields is owned by the Linfox Group and Beck Corporation, providing significant logistics, property management and development experience. Essendon Fields’ emphasis is on creating quality places of interest and enjoyment, and delivering high-quality built form and infrastructure in an expansive landscape.

Essendon Fields will build the Private Hospital to a high standard, incorporating best practice health facility planning, architectural, sustainability, urban planning and precinct activation principles and techniques. Essendon Fields will be responsible for the land, construction of the warm shell and the car parking facilities on site. The design and construction of the Hospital by Essendon Fields will enable the provision of high quality health services, innovation and digital hospital technologies.

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2. Project Information

2.1 �Vision for the Hospital

Essendon Fields Private Hospital will be a leading provider of high quality private healthcare services for the north western metropolitan region of Melbourne. The hospital will be supported by a flexible land parcel enabling inpatient and other clinical capacity to keep pace with the growing and aging catchments which it serves.

The hospital will be recognised as a community leader providing local employment opportunities, and offering a culture of continuous improvement and innovation.

2.2 �Project Objectives

The primary objectives for the development of the private hospital are:

�� Providing a high quality and safe health and hospital service;

�� Increasing the access to health services for residents within the north west by providing convenient care that is located closer to home;

�� Improving access to medical services for regional passengers at Essendon Airport;

�� Provides flexible development solution which will allow for expansion of the hospital over the medium to long term to meet future demand;

�� Ensuring a sustainable workforce and creating work opportunities for the local community; and

�� Ensuring a financially viable hospital facility and service that provides value for money for Essendon Fields and the Hospital Operator.

2.3 �Economic Benefits

The development and operation of Essendon Fields Private Hospital will have a positive economic impact on the surrounding community. An analysis conducted by Urbis (2014) assessed the employment generation and investment value the Essendon Fields precinct and the proposed private hospital.

As at 2016, approximately 5,000 people were employed within the Essendon Fields precinct. Based on the proposed development pipeline, Essendon Fields has the potential to provide up to 14,000 additional jobs, with the private hospital accounting for approximately 570 of these on an ongoing basis.

Further analysis undertaken by Street Ryan estimates the new hospital project will create 270 jobs during construction, 571 direct jobs within the hospital once fully operating and will have an economic impact on Victoria of $479.7m.

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Australia’s First Hyatt Place opening early 2017 and The Australian Events Centre opening late November 2016.

LaManna Direct: 10,000m2 independent, family-owned retail incorporating groceries meat, deli, patisserie and café. In June 2014, described by The Age as “probably the best supermarket in Australia.”

2.4 �Essendon Fields

Essendon Airport played a significant role in Melbourne’s economic growth, having served as the city’s international and domestic airport until 1970. Since 2001, the Fox and Beck families have adopted a long-term approach to maximising the potential of Essendon Fields.

Today, Essendon Fields comprises Essendon Airport and six other centres of excellences including Auto Centro, DFO and Homemaker Centre, Business District, Leisure District, LaManna Direct and Hyatt Place Hotel (opening early 2017), and the Australian Events Centre (opening late November 2016). All developments at Essendon Fields are complementary activities to aviation. Essendon Fields is committed to creating better ways to fly, shop, work, drive, eat, rest, have fun and be healthy.

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DFO & Homemaker Centre: one of the strongest-performing factory outlets in Australia with over 110 brands spanning over 25,000m2.

Australia’s premier regional services airport: since 2014 regional arrivals have grown from 10,00 to 60,000 with a planned capacity for 200,000.

Business District: 176 businesses and over 5,000 staff.

Leisure District: including Bounce Inc. with over 250,000 visitors per annum and Melbourne’s first indoor skydiving facility opening early 2017.

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2.5 �Strategic Location Advantages

The location of Essendon Fields provides a number of strategic advantages for a private hospital development, including the following factors:

�� Located approximately 10 kilometres from Melbourne CBD and 6.5 kilometres from Tullamarine airport (5 minute drive);

�� Close proximity to four Major Activity Centres and two Local Activity Centres (Macroplan Dimasi);

�� Strong road connectivity with access to major road networks including the Calder and Tullamarine Freeways;

�� Proximate to Essendon Airport which is identified as a major transport gateway (Plan Melbourne);

�� Access to emergency flight services through Essendon Airport;

�� Multiple transport linkages in the close proximity including tram, bus, Essendon Fields shuttle bus to the Essendon train station, and ample car parking;

�� Access to a catchment population of 485,000 within a 15 minute drive time radius around the site (Macroplan Dimasi);

�� Proximity to 120,000 residents from the surrounding residential houses in the local council area, City of Moonee Valley (Social Health Atlas of Australia); and

�� Located approximately 1 kilometre from Westfield Airport West shopping centre.

Proximity to Major and Local Activity Centres

Essendon Fields is located in close proximity to four of the nine Major Activity Centres (MACs) in Melbourne. An additional two MACs are proposed in the future at Toolern in the outer west and Lockerbie in the north. Essendon Fields is also highly proximate to Local Activity Centres (LACs) including Essendon, Niddrie and Airport West.

Plan Melbourne, the foremost strategic plan for guiding the future direction of Melbourne identifies Essendon Airport as a major transport gateway. This offers Essendon Fields a strong, strategic position with superior accessibility to these higher order retail and commercial centres, both now and into the future.

Road Connectivity

Essendon Fields is situated within an established urban area surrounded by major residential, industrial and commercial uses in the north west. The site possesses strong connections to the established road network, with direct access to the Calder and Tullamarine freeways. Essendon Fields is additionally proximate to Citylink, the Western Ring Road and Hume Highway.

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�Strategic Location Advantages continued

Connection to major regional thoroughfares is also strong, with less than a 15 minute drive to:

�� Keilor Road / Mount Alexander Road

�� Bell Street

�� Pascoe Vale Road

�� Sydney Road

�� Ballarat Road / Western Highway

� Essendon Fields

� Tullamarine Airport

� Melbourne CBD

–––– Western Ring Road

–––– Calder Freeway

–––– Tullamarine Freeway

–––– Citylink

–––– Hume Highway

–––– M1 Westgate/Citylink

–––– Bell Street

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Key Transport Linkages

The map below demonstrates key transport linkages available to Essendon Fields.

Pedestrian access is provided via the western and southern road connections, as well as the two pedestrian overpasses on the western side of the airport.

The site is additionally surrounded by routes included in the Principle Bicycle Network (One Mile Grid).

Tram/ Train

The number 59 - Mathews Avenue tram stop is located approximately 500 metres from the site, with trams providing a 15 minute tram ride to Essendon Train Station. Essendon Station is located on the Craigieburn line which has linkages to the Melbourne CBD and Craigieburn.

Bus

The York Street, Mathews Avenue bus stop is located directly adjacent to the site. The 477 bus route traverses towards Moonee Ponds and Essendon Railway Station. The bus route 952 traverses from the City to Broadmeadows.

Car Parking

600 direct hospital car parks and 5,500 car parks in the greater Essendon Fields precinct.

EF Shuttle

Shuttle stop on English Street in Essendon Fields opposite Runway Plaza Shopping Centre and shuttle stop at Essendon Station (15 minute journey) departing every 30 minutes. Proposed shuttle stop for the hospital site.

Morning Service 7:15am – 9:30am Afternoon Service 4:15am – 6:30pm

Source: Public Transport Victoria, City of Moonee Valley

Car Entrance

Bike Access

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Drive Time Catchment

An analysis undertaken by Macroplan Dimasi identified the catchment area for Essendon Fields within a 15 minute driving radius. Based on the radius depicted below, the ABS data for 2015 indicates a catchment population of approximately 485,000 people for the proposed private hospital. The following map depicts the 15 minute drive time catchment area at 11am on a weekday.

The Australian Bureau of Statistics (ABS) anticipates an increase in population of the catchment by approximately 25% between 2015 and 2031, representing approximately 135,000 additional residents in the Essendon Fields catchment area. This forecast is depicted in the graph.

Source: Macroplan Dimasi – Essendon Fields Connectivity Report

Population Catchment 15 minute driving radius (11am)

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Surrounding Residential Area

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2.6 �Market Analysis

Essendon Fields is an attractive proposition for a greenfield private hospital development due to the following factors:

�� Lack of competition from private hospitals operating in the north west area (M&J Healthcare Property Advisory);

�� Strong underlying demographics offering a large and aging population, supporting ongoing strong demand for hospital services (Social Health Atlas of Australia); and

�� Significant unmet demand for both same day and overnight admissions, (as per analysis undertaken by Hardes & Associates).

Local Competitors

An analysis undertaken by M&J Healthcare Property Advisory identified the key hospital competitors located within a 15 and 30 minute driving radius of Essendon Fields. The following map and table provide a snapshot of the primary hospital competitors located within the Essendon drive time catchment, equating to an approximate 12 kilometre radius of the Essendon Fields site. The table has been sorted by ‘closest proximity’ to the Essendon Fields site.

As demonstrated, few major hospital competitors have been identified in the catchment area with a notable lack of the hospitals to the north west of the site.


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�Market Analysis continued

Hospital and Operator

Km from EF

Beds Specialities Comments

H: Essendon Private Hospital

O: Independent Private Hospitals of Australia

4.1 km (9 mins)

39 beds

Previously Medical/Surgical Hospital (Gastro, General, Ophthalmology, Oral, Plastics), Mental Health

Circa 40 year old small private hospital. Currently closed for refurbishment.

H: John Fawkner Private

O: Healthscope

9.5 km (17 mins)

147 beds

Surgery (Cosmetic Surgery, ENT, Gastro, Ophthalmology, Oral, Vascular)

Medical/Oncology

Emergency Department (24 hour)

ICU / CCU

Older hospital with apparent aging infrastructure and existing facilities.

H: Brunswick Private Hospital

O: Healthe Care

10.7 km (18 mins)

123 Rehabilitation and Medical Hospital

Rehabilitation and general medicine facility with outpatient and community based services.

H: Western Private Hospital

O: Independent Hospital

11.4 km (22 mins)

68 beds

Surgical, ICU and Cardiac

Recently expanded including ICU / Cardiac beds, Cath Lab, PET

Source: M&J Healthcare Property Advisory

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Demographics – Size, Age and Growth

An analysis conducted by Hardes and Associates – an independent hospital demand modelling specialist - identified the primary catchment area (denoted in yellow) for the Essendon Fields private hospital to include the Local Government Areas (LGAs) of Moonee Valley, Moreland, Maribyrnong, Brimbank, Hume and Melton in the north and west of Melbourne:

The primary catchment area for Essendon Fields offers an existing large population which is ageing and growing rapidly (Social Health Atlas of Australia):

�� Approximately 28% of the total population of approximately 895,000 is aged over 50 (249,000 residents).

�� The overall population is expected to grow a further 23% by 2025 to approximately 1,097,000.

– Residents over 50 are projected to grow at a more rapid rate of 31% over the ten year period, with persons aged over 50 numbering close to 326,000.


EF

� page 18


2015 2025 Projected % Growth 2015 to 2025

Local Government Area

Total Persons over 50

Total Persons

% Persons over 50


Total Persons

% Persons over 50


Total Persons

Melton 32,701 127,485 26% 45,995 156,160 29% 41% 22%

Hume 54,729 191,317 29% 75,049 231,360 32% 37% 21%

Brimbank 66,338 206,952 32% 88,773 248,665 36% 34% 20%

Maribyrnong 16,325 82,890 20% 20,641 108,922 19% 26% 31%

Moonee Valley 38,778 119,844 32% 48,892 142,967 34% 26% 19%

Moreland 40,541 166,639 24% 46,880 209,564 22% 16% 26%

Total - Catchment 249,412 895,128 28% 326,232 1,097,638 30% 31% 23%

Source: Social Health Atlas of Australia, Data by Local Government Area, Published 2016: May 2016 Release 2 (Population Projections All Persons)


Essendon Fields Catchment – Total Persons over 50: 2015 projected to 2025

Population Wealth and Private Health Insurance

The site is well positioned to appeal to a band of premium / high value local residents in the Essendon Fields catchment area. The significant land area encompassed within the 15 minute driving radius of Essendon Fields demonstrates access to a premium market with a high proportion of white collar, high income households with greater capacity to purchase premium or luxury items such as health insurance and health care (Macroplan Dimasi).

Unmet Demand

Hardes & Associates conducted an analysis of the demand for the Essendon Fields catchment area. The study determined that the current market across the catchment achieves 73,589 same day admissions and 32,245 overnight admissions.

The analysis further investigated the unmet demand for the private hospital market in the catchment area. The analysis included consideration of the following factors for the catchment area:

– population growth

– population ageing

– speciality specific trends in admission rates

– length of stay

– public and private sector distribution

– private hospital utilisation

– project hospital growth

– actual same day and overnight admissions

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Unmet Demand

Hardes & Associates estimate that given expanded supply, the private hospital market could accommodate an additional 19,900 same day admissions and 9,300 overnight admissions (for a total of 42,650 bed days) in the short term, representing a significant opportunity for a new private hospital operator to capture a share of the market.

The breakdown of the unmet demand for each LGA in the Essendon Fields catchment is demonstrated in the following graphs.

Unmet Demand - Number of Same Day Admissions

Unmet Demand - Number of Same Day Admissions

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n.320

h.104

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Storage

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Vehicle Store Above

Batter/Fill at

Ground Floor Level

VehicleDisplay

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ServiceParking

ServiceVehicleBays

Pylon Sign

RL 87.1

RL 83.7

RL 82.15RL 83.5

RL 88.5

12

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56

78

910

1112

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3233

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Runway Plaza

Everette Centre

Essendon Fields House

Linfox Australia Group HQ

Rotary Wing Facility

Australia Post DeliveryCentre

Australia Post eLetterSolution

Hangar 71

FordPre Delivery

AUTO SLIDING GATE

Ford Dealership

Hyundai/CJD Dealership

MMBWservice

Toyota Dealership

Mazda Dealership

Honda Dealership

ARP

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Airport Terminal Building

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FordPre Delivery

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AUTO SLIDING GATE

EASE

MEN

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EQUIPMENT ROOM (ILS)

Hyundai/CJD Dealership

Hangar 74

AERODROME REFERENCE POINT (ARP)

LONG.E. 144deg 54' 1.8"LAT.S. 37deg 43' 46.5"

Child Care Centre

//

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gate

gate

LPG Armaguard No.1 P/L LPG Armaguard No. 2 P/L

LPG Armaguard No. 4 P/L

LPG Armaguard No.1 P/L


Terminal Apron

Mobil Oil


City West Water

Executive Airlines

Apron

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Heritage Park

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Mobil Oil Australia Pty Ltd

Minister for Finance

ARPE 314 984.530N 5 822 096.589ELEVATION 78.6RED 78.5

08/26 RWY 1921m x 45m

17/3

5 RW

Y 15

03m

x 4

5m17

/35

RWS

150m

WID

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08/26 RWS 180m WIDE

RWY 17 END

E 314 872.168

N 5 822 944.8730

ELEVATION 85.6

RWY 08 END

E 314 205.336N 5 821 712.320

ELEVATION 72.9

EAST-WEST RUNWAY

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gate

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Boeing Reserve

Fixed Wing Facility

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LOCALIZER ANTENNA

Pedestrian Access toAirside via ControlledDoors

Pedestrian Access toAirside via ControlledDoors

Armagaurd R&D Centre

//

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ng s

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Nissan Dealership

The Good Guys

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n.300h.104

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Mobil Oil Australia Pty Ltd

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Mitsubishi Dealership

The Good Guys

Car Park

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INFORMATION

AS SHOWN@A3 KR - 27.05.2016

HOSPITAL BOUNDARY -

N

Shee

t size

:

Drawing Status

Scale Drawn DateChecked

RevisionDrawing Number

Drawing Title

Plot

ted:

27.0

5.20

16 1

0:56

A3

THIS DRAWING IS THE COPYRIGHT OF ESSENDON AIRPORT PTYLTD AND IS NOT TO BE REPRODUCED WITHOUT WRITTENAPPROVAL. FIGURED DIMENSIONS TAKE PRECEDENCE OVERSCALED DIMENSIONS. CONTRACTORS AND USERS OF THESEDRAWINGS ARE TO IMMEDIATELY NOTIFY ESSENDON AIRPORTMANAGEMENT OF ANY DISCREPANCIES.THIS DRAWING IS IN AMG COORDINATES UNLESS NOTEDOTHERWISE.

C:\Users\krahman\Desktop\Paula\Hospital boundary.dwgLAYOUT

LOCALITY PLANSCALE 1:10,000

SITE PLANSCALE 1:2,000

SITE AREA = 31,000m2 APPX.

TULL

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LIONEL STREET

AIRSIDE

AIRSIDE FENCE

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2.7 �Site Map

The map below illustrates the position of the hospital (denoted in red) as it sits within the Essendon Fields precinct.

This site position is strategically located close to freeways, which approximately 140,000 cars pass each day.

Proposed hospital site

H

� page 21


2.8 �Hospital Site

The hospital location is situated close to Essendon Fields within proximity to the attractive new Hyatt Hotel. The site has ample room for expansion, and allows for a flexible staging plan.

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E REF ERENCE POI NT (ARP)

LONG.E . 144de g 54 ' 1 . 8"LAT .S. 37de g 43 ' 46 . 5"

ARPE 314 984.530

N 5 822 096.589

ELEVAT ION 78. 6

RED 78 .5

84.50

Ga te 20

Ga te 14

Ga te 12

Ga te 11

Ga te 21g at e

Te rmi na l Ap ron

EQUIPMENT R

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x 45m

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E 31 4 872. 16 8

N 5 8 22 944 .87 30

E LEVA TION 85 .6

R WY 35 EN D

E 31 4 962. 96 0

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E LEVA TION 73 .0

R WY 08 EN D

E 31 4 205. 33 6

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Ch ild Car e Ce nt re

LPG Ar magua rd No . 1 P/L

LPG Ar magua rd No . 2 P/ L





Cit y We s t W

a te r

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He ri ta g e Par k

Mob il Oil Au st ra li a Pty L td

Mi ni s te r fo r Fi n an c e

Boe in g Re se r ve

F ix e d Wi ng Fa c ili ty

Pe de s tr ia n Ac c es s t o Airs i de v i a Con t ro ll ed Doo r s


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GAM CAR

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n.300

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h.104

h.103

18892.5239

1

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ServiceParking

ServiceVehicleBays

RL83.7

RL83.5

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6061

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Description

1:500

0 5 10 15 20 25

Billard Leece Partnership PtyLtdArchitects & Urban PlannersLevel 7/180 Flinders StreetMelbourne 3000Victoria AustraliaT +61 3 9656 5000F +61 3 9656 5050E [email protected]

Drawing Number Revision

Project No.

Scale

Date

27/0

6/20

16 3

:29:

18 P

M

1 : 5000@A3

SITE PLAN

AA10-0003

14803 JUNE 2016

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E REF ERENCE POI NT (ARP)

LONG.E . 144de g 54 ' 1 . 8"LAT .S. 37de g 43 ' 46 . 5"

ARPE 314 984.530

N 5 822 096.589

ELEVAT ION 78. 6

RED 78 .5

84.50

Ga te 20

Ga te 14

Ga te 12

Ga te 11

Ga te 21g at e

Te rmi na l Ap ron

EQUIPMENT R

OOM (I LS)

Mob il Oil

Ap ron

ALER Bu ild in g

Eme rge n cy Se r vi ce s As s em

bl y

LOCALI Z ER ANTENNA

NORTH-SOUTH RUNWAY

08/26 RWY 19 21m

x 45m

17/35 RWY 1503m x 45m17/35 RWS 150m WIDE

08/26 RWS 1 80m

WID E

RWY 17 EN D

E 31 4 872. 16 8

N 5 8 22 944 .87 30

E LEVA TION 85 .6

R WY 35 EN D

E 31 4 962. 96 0

N 5 8 21 444 .62

E LEVA TION 73 .0

R WY 08 EN D

E 31 4 205. 33 6

N 5 8 21 712 .32 0

E LEVA TION 72 .9

E AST -WE ST R

UNWA Y

AUTO SLIDING GATEAUTO SLIDING GAT E

EASEMENT

gat e

g at e

g at e

Sliding s

ecurity

gate

Sliding s

ecurity

gate

SLIDING GATE

Runway Pl a za




Ro ta ry Wing F ac i lit y


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Ha nga r 71

Hy unda i/ CJDPre

Del iv er y

Fo r dPre

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F o rd De a le rs h ip


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Air port Ter min a l Bu i ld in g


Hy unda i/ CJDPre

Del iv er y

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Ch ild Car e Ce nt re







Cit y We s t W

a te r

Ex ec u ti ve Ai rli n es

He ri ta g e Par k

Mob il Oil Au st ra li a Pty L td

Mi ni s te r fo r Fi n an c e

Boe in g Re se r ve

F ix e d Wi ng Fa c ili ty



Armaga u rd R

&D Cen t re

Gr e atW

a llDe al er s hi p

F it ne s s Addi x

Mits u b is h i De a le rs h ip

Ni ss a n De a le rs h ip

Th e Good Guy s

Nis s a nPre

Del iv er y

Ca r Par k

Ca r Par k

GAM CAR

PARK

Vo lk s wa ge n

TULLAMARINE

KEEP INDEFINED

LANE

LA NED EF IN ED

KEEP IN


LA N E

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n.300

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h.104

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18892.5239

1

CustomerParking

ServiceParking

ServiceVehicleBays

RL83.7

RL83.5

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N

Description

1:500

0 5 10 15 20 25



Project No.

Scale

Date

27/0

6/20

16 3

:29:

18 P

M

1 : 5000@A3

SITE PLAN

AA10-0003

14803 JUNE 2016

TULLAMARINE FREEWAY

LARKIN BOULEVARD

� page 22


3. Project Scope

3.1 �Overview

The Essendon Fields Private Hospital will be privately operated and licensed as a private hospital.

It is anticipated that the Hospital Operator will be an organisation (profit or not-for-profit) who is experienced at operating private hospitals, and accredited through organisations such as the Australian Council of Healthcare Standards. The selected Hospital Operator is expected to be capable of holding a license from the Victorian Department of Health and Human Services and the Commonwealth Department of Health.

3.2 �Role of Hospital Operator

The successful Respondent (Hospital Operator) will be expected to work with the nominated stakeholders during the planning, design and construction of the private hospital. The Hospital Operator will be responsible for the delivery of all operations of the Hospital from the completion of the hospital.

Planning and Construction Phase

Subject to the successful planning submission, the Hospital Operator will remain integral to the detailed design, tender, and construction phase of the project informing and approving at all times each design phase as it occurs.

Input into this phase for the Hospital Operator will include the following:

�� While Essendon Fields will be responsible for all construction activities, the Hospital Operator will be an integral part of the Project Team through to construction completion and hand over, including review and agreement to relevant project decisions where applicable;

�� The Hospital Operator will:

– Inform and participate in all design activities including final sign off;

– Take responsibility for procurement and financing of relevant Operator furniture, fittings and equipment;

– Work in conjunction with Essendon Fields to ensure a smooth and timely procurement process is delivered in line with agreed project timelines;

– Participate in relevant building commissioning as applicable including relevant ‘training’ associated with key plant and equipment, enabling practical completion to be achieved; and

– Lead the operational commissioning phase of the project providing operational completion to be achieved.

� page 23


�Role of Hospital Operator continued

Operational Phase

The Hospital Operator will be fully responsible for the operation of the private hospital, including all aspects of facilities management and maintenance, including external areas.

Essendon Fields is proposing a flexible operating model for the proposed broader hospital facility. The operation and ownership of ancillary services such as car parking, and consulting suites will be discussed with the selected Operator.

3.3 �Planning Regime

As the site is owned by the Commonwealth, the Victorian Planning and Environment Act 1987 does not apply. Land use and development approvals are instead regulated by the Federal Government through the Airports Act 1996 and associated Regulations. This helps to ensure a simplified process, reduces layers of bureaucracy, and provides a streamlined approval timeline.

Noise exposure is an important planning consideration at Essendon Fields. Recent testing performed by Essendon Fields indicates that some planned changes to the overall site to ensure that the noise exposure for the proposed hospital site will be compliant with regulations.

Essendon Fields will drive the planning approval process but will require input of the proposed Hospital Operator.

3.4 �Hospital Design Concept

Essendon Fields and its architect, Billard Leece Partnership, have prepared an indicative scope and staging solution, together with initial hospital design concepts in order to help create the vision for the Hospital. Essendon Fields expects the successful respondent to inform the final preferred scope, staging and design as part of the next phase of the project.

Please see the following link to preview the preliminary concept design flythrough:

www.ef.com.au/now-leasing/ef-private-hospital-eoi

http://www.ef.com.au/now-leasing/ef-private-hospital-eoi%20

� page 24


�Hospital Design Concept continued

Proposed Services Stage 1A Stage 1B Stage 2 Total

Acute Multi Day Beds 96 beds 64 beds 96 beds 256 beds

Day Chemo Chairs 20 chairs 20 chairs

Operating Theatres 6 theatres 2 theatres 6 theatres 14 theatres

Consulting Suites Practitioners

2,000 sqm

15 practitioners

2,000 sqm

15 practitioners

4,000 sqm

30 practitioners

Pathology 200 sqm 200 sqm

Radiology 600 sqm 400 sqm 1000 sqm

Preliminary Concept Blocking

Essendon Fields’ indicative hospital design concept is to have a compact plan hospital footprint in a two storey podium and three storey ward tower configuration, consisting of:

�� Ground floor – front of house, back of house, emergency department, imaging and other diagnostics

�� First floor – operating theatres

�� Third floor and above – inpatient units – nominally 32 beds per unit

� page 25



The hospital will be developed in three blocks with generous garden courtyards separating the blocks. Some aspects of the design concept are:

�� Green space orientated to the north to draw in generous natural lighting and provide wind-protected courtyards;

�� Horizontal linkages between blocks provide for good patient, staff and logistics connections;

�� The main frontage faces Larkin Boulevard, with an undercover drop-off, a landscaped forecourt and vehicle turnaround, and generous space for car-parking near the main entry;

�� Emergency department vehicles entrance off Larkin Boulevard, but separately to the public;

�� Logistics vehicles enter from the back of the site;

�� Generally, car parking is on grade in the early stages, with some below ground and some on decks as the demand increases with the size of the hospital;

�� Separate medical centre building is proposed adjacent the hospital building, which can be separately expanded over time. It shares an address court with the hospital; and

�� The freeway frontage is heavily planted out and screened from the hospital.

View from Tullamarine Freeway

� page 26



Stage 1a, 1b and 2 View from Larkin Boulevard

Stage 1a, 1b and 2 View from Larkin Boulevard

� page 27


3.5 �Preliminary Staging Plan

Essendon Fields’ design concept is such that it can be staged in a number of ways, subject to the Operator’s needs and priorities. It is zoned for floor by floor horizontal connections and expansion, such that the existing facility is not interrupted as each new stage is added. Similarly, the main entry and core infrastructure remains intact with each expansion behind the original building.

The indicative plans show an option to stage the hospital into three stages:

�� Stage 1a being nominally 96 beds (including ICU/HDU and Labour/Delivery suites) and 6 operating theatres, with an Emergency Department, Imaging facility and Pathology facility. Consulting would be constructed concurrently in a medical centre building.

�� Stage 1b being an additional 64 beds and 2 theatres (able to be constructed concurrently with Stage 1a or as a separate stage).

�� Stage 2 has been shown as a major expansion to the facility with an additional 96 beds, a further 6 operating theatres, 2 Cath labs, and a Day Chemotherapy facility. Emergency would expand, as would imaging and ICU.

Car parking has been similarly staged, in parallel with the development and density of hospital services.

Ground Floor – Stage 1a and 1b

Executive Airlines

EDGE OF BITUMEN

HELIPAD

BI TUMEN

SURFACE

EN18

UP

CL 7 6 .5 3

Shed

LARKIN BOULEVARD

12M SETBACK ZONE

SITE BOUNDARYTULLAMARINE FREEWAY

STAGE 1 A4 STOREY

12M SETBACK ZONE

1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18

A

B

C

D

E

F

G

H

I

J

K

L

CARPARK 1

LOADING

BOH

LIFT

FOH

502 m²EMERGENCY

419 m²

PLANT

423 m²

CARPARK 2

STAGE 1 A

MEDICALCENTRE

563 m²

LIFTSTAIR

4

STAIR

DROP OFF

IN/O

UT

IN/O

UT

IN/OUT

IN/OUT

CARPARKSTAFF

CARPARK 3

CARPARK 4TRAVEL

DROP OFFUNDER CROFT

FOH

502 m²

CLINCALSUPPORT

709 m²

STAGE 1 B

Description



Project No.

Scale

Date

27/0

6/20

16 3

:34:

07 P

M

1 : 1000@A3

PLAN-PROVING - GROUND & LEVEL1 (stage 1)

AA10-0001

14803 JUNE 2016

� page 28


�Preliminary Staging Plan continued

Ground Floor – Stage 1a, 1b and 2

First Floor – Stage 1a, 1b and 2

Executive Airlines

EDGE OF BITUMEN

HELIPAD

BI TUMEN

SURFACE

EN18

UP

CL 7 6 .5 3

Shed

1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18

A

B

C

D

E

F

G

H

I

J

K

L

LARKIN BOULEVARD

SITE BOUNDARY

12M SETBACK ZONE

STAFFCARPARK

CARPARK - MULTIDECK

LOADING

BOH

FOH

497 m²EMERGENCY

421 m²

PLANT

421 m²

STAGE 1 A4 STOREY

MEDICALCENTRE

603 m²

STAGE 2

STAGE 1 A

STAGE 2

LIFT

LIFT

STAIR

4

STAIR

STAIR CARPARKONGRADE

DROP OFF

TRAVEL

UN

DE

R C

RO

FT

12M SETBACK ZONE

TULLAMARINE FREEWAY

STAGE 1 B

CLINICALSUPPORT

718 m²

EMERGENCY

420 m²

DROP OFFUNDER CROFT

ADMIN

141 m²

PLANT

490 m²

DAY CHEMO

806 m²CLINICALSUPPORT

867 m²

ADMIN

245 m²

TRAVEL

656 m²

FOH

212 m²

MEDICALCENTRE

590 m²

Description



Project No.

Scale

Date

27/0

6/20

16 3

:35:

17 P

M

1 : 1000@A3

PLAN-PROVING - GROUND & LEVEL1 (STAGE 2)

AA01-0001

14803 JUNE 2016

mailto:[email protected]

http://www.blp.com.au

� page 29


�Preliminary Staging Plan continued

Second Floor – Stage 1a, 1b and 2

Third Floor – Stage 1a, 1b and 2

� page 30


3.6 �Services – Clinical and Non-Clinical

Flexibility will be provided to the Operator as to the nature, mix and complexity of clinical services to be provided by the hospital. Based on the Hardes analysis, it is likely the hospital will focus on unmet clinical demand including surgical and medical based clinical services. An opportunity will also exist for other private hospital based clinical services to be considered including overnight rehabilitation and mental health services should the Operator view this as important, as well as relevant day services such as day oncology treatment services. It will be the Operator’s role to define the service profile during the early planning phase of the project.

The Operator will also take responsibility for providing the associated clinical support services (e.g. radiology, pathology) and all associated non-clinical services (excluding car parking) required in supporting the overall operation of the Hospital.

3.7 �Car Parking and Traffic

Essendon Fields is proposing to provide car parking for the Hospital. Fringe benefit tax assistance will be preserved for staff with a maximum $8.50 per day charge. For public car parking, an appropriate charging regime will be determined with the Operator that is consistent with existing charging practises currently in place within the broader Essendon Fields precinct.

The total number of spaces to be provided is estimated at 600 spaces, and will be developed to ensure that it meets Hospital Operator and patient needs, and complies with all relevant legislation (One Mile Grid).

Planned road reconstruction and widening works will provide significant additional capacity which will more than adequately cater for the additional traffic to be generated by the hospital development as well as the current projects within Essendon Fields currently under construction and an additional 10 years growth to allow for further development within Essendon Fields (One Mile Grid).

3.8 �Regulatory

Private hospitals in Victoria must comply with minimum regulations for patient safety and care.

The requirements for the safety and quality of patient care for private health facilities are set out in the Health Services Act 1988 and Health Services (Public Hospitals and Day Procedures Centres) Regulations 2013.

Respondents will be required to consider all legislative and regulatory frameworks so as to ensure that the Services can be delivered under the Respondent’s proposed delivery solution.

� page 31


4.1 �Commercial Principles

Set out below is a high level summary of the Commercial Principles that will apply to the project, and will be incorporated into the project agreement.

Essendon Fields’ reserves the right to change its position in relation to the Commercial Principles.

Issue Principle and Approach

Access and site tenure

The Hospital Operator will be provided with appropriate access and occupation rights to the site, in order to facilitate operation, upgrade and maintenance of the hospital. Additional access will be granted to facilitate collaboration with Essendon Fields throughout the design and construction process, as required.

Design risk Essendon Fields will take all design responsibility so that the proposed Hospital is suitable for the agreed nature and volume of services to be provided under the project agreement and meets private hospital licensing and regulatory requirements. The Hospital Operator will sign-off on all design documentation.

Planning Essendon Fields will lead the planning approval process (in conjunction with the Hospital Operator) to obtain the required planning and environmental approvals for the project. Essendon Fields will assume all responsibilities associated with obtaining planning approval for the private hospital (and other commercial opportunities).

Essendon Fields shall not be responsible where there are delays in obtaining planning approval. The Hospital Operator shall be required to operate the hospital in accordance the conditions set forth in the relevant planning permits.

Ground condition

Essendon Fields will have responsibility and liability for site conditions and works required to undertake the construction of the private hospital.

Construction and completion risk

Essendon Fields will take the risk of delivery of the private hospital including construction and:

�� ensuring the building is consistent with the design requirements; and

�� ensuring its completion within the agreed time frame.

Fitout The selected Hospital Operator will work in conjunction with Essendon Fields to design and build an integrated private hospital. Essendon Fields will be responsible for the delivery of the fitted out hospital which will be handed to the Operator who will be responsible for the supply of major operator equipment and furniture, fixtures and equipment.

4. Commercial Framework

Infrastructure and Development

� page 32


Issue Principle and Approach

Lease term The proposed initial lease term for the Operator is a minimum of 20 years with option periods.

Other Lease terms

The proposed lease agreement will be executed on a ‘triple net’ basis. In addition to paying rent and outgoings, the Hospital Operator will be responsible for:

• ratesandtaxes;• buildinginsurance;and• maintenanceandplantandequipmentreplacementcosts.

The landlord will have minimum requirements for both insurances and maintenance that the Hospital Operator will need to comply with.

As part of the EOI response, the Respondent needs to provide details of lease terms they are willing to commit to such as:

• rentalrates• escalationrates• leaseterm• options• marketreviews• otherconditionsandobligations

Service delivery The Hospital Operator will operate the private hospital and deliver all Services at the facility in accordance with specified service standards. The Operator will be required to obtain all licences and permits from authorities, necessary to deliver the Services.

Failure to meet these requirements may trigger abatement and depending on the severity, default.

Equipment The Hospital Operator is responsible for procurement, use and maintenance of all equipment (including medical equipment).

Workforce The Hospital Operator will be responsible for and take the risk of all workforce matters at the private hospital including the recruitment and retention of suitably qualified staff.

Utilities The Hospital Operator will be responsible for all utility costs (price and volume).

Asset condition and end of lease condition

The Operator carries all responsibility for upkeep of the private hospital. The asset condition requirements at end of lease will be specified in the project agreement.

Taxation The Operator will assume all risks associated with taxation.

Operations Phase

Other

�Commercial Principles continued

� page 33


5. Content and Evaluation of EOIs

5.1 �Evaluation Criteria

Essendon Fields is seeking to identify Respondents with the necessary capability, vision, capacity and commitment to operate the private hospital.

The Evaluation Criteria that Essendon Fields will use in the evaluation of EOI responses are set out below.

The Evaluation Criteria are not necessarily exhaustive, or in any order of significance. The response information to be included in the EOI in responding to the Evaluation Criteria is set out in the Returnable Schedules.

Respondents should carefully consider and respond to each criterion when formulating their EOI responses.

Responses must address the following criterion:

CRITERION 1 – Project Understanding and Approach

�� The Respondent’s vision for the private hospital and the manner in which its proposed solution will achieve the Project Objectives.

�� The Respondent’s approach to delivering the necessary services.

�� The Respondent’s approach to design, service mix, size and staging.

CRITERION 2 – Understanding of Commercial Principles

�� The Respondent’s understanding, acceptance and approach to the Commercial Principles of the Project, including the proposed risk allocation and lease terms.

�� The suitability of the Respondent’s proposed commercial and contractual structure to successfully operate the private hospital.

� page 34


�Evaluation Criteria continued

CRITERION 3 – Technical Capability

�� Respondent’s capacity and capability to manage and deliver the relevant services at the private hospital.

�� Respondent’s capacity and experience in dealing with health funds, particularly in terms of Greenfield developments and ensuring early establishment of health fund contracts.

�� In particular, Respondents must demonstrate successful experience in operating comparable facilities delivering similar health services at other locations in Australia.

�� The Respondent’s approach to meet required quality standards and operating requirements, and their ability to provide innovation and continuous improvement in the delivery of services.

�� The Respondent’s experience in commencing and operating new private hospitals and in particular:

– Success in attracting medical professionals; and

– Success in ramp up of patient occupancy.

CRITERION 4 – Organisational structure and resourcing

�� Respondent’s organisational structure demonstrating the necessary suitability and strength for operating a private hospital (including organisational structure chart).

�� Respondent’s ability to demonstrate the availability and capacity of resources to operate the private hospital.

CRITERION 5 – Financial capacity

�� Respondents demonstrated financial capability for their involvement in operating the private hospital.

� page 35


6. Procurement Process

6.1 �Overview of the Procurement Process

The issue of this EOI represents the first stage of the Procurement Process for the Project.

The EOI documentation, upon which detailed EOI responses are to be based, has only been made available to interested parties specifically identified by Essendon Fields and its advisors as having the resources and capability to successfully develop and operate the private hospital facility.

Interested parties are required to submit an EOI response based on the requirements as outlined in this document.

The terms and conditions governing this document are set out in Appendix B.

6.2 �Probity

PwC will monitor the EOI process to ensure proper probity protocols and procedures are in place.

� page 36


7. EOI Procedural Matters

7.1 �Enquiries and Clarification Requests

All enquiries regarding this Invitation must be made by email and directed to the Project Coordinator at the following address:

[email protected]

The decision on whether to respond to any question or enquiry (and the timing of any response) will be at the discretion of Essendon Fields.

7.2 �Individual Information Session

Essendon Fields will hold individual information sessions with those Respondents who have demonstrated their credentials through the EOI process. The Individual Information Sessions are intended to provide an opportunity for both formal and informal Respondent integration during the EOI Phase. The session is intended to be held as follows:

Time: By appointment

Individual Information Sessions will only be offered to Respondents (and Respondent Members) who demonstrate their eagerness to participate in the project.

mailto:[email protected]

� page 37


7.3 �Lodgement Details

Respondents must submit four bound hard copies and one electronic copy (on a USB in PDF format) containing the submission and associated attachments.

The submission should be provided in one sealed envelope or package, marked and delivered as follows:

STRICTLY PRIVATE AND CONFIDENTIAL Essendon Fields Private Hospital Expression of Interest Attention: Paula Villegas Essendon Fields House Level 2, 7 English St Essendon Fields VIC 3041

Submissions must be time and date stamped at reception prior to being placed in the Tender Box.

7.4 �Closing Time

The closing time for the lodgement of the EOI is:

4pm 19th August 2016

EOIs received after the Closing Time will be deemed “late”. Late EOIs will be considered by Essendon Fields at its absolute discretion only.

7.5 �Submission Requirements

Respondents should provide all information requested within the EOI invitation, in particular, Returnable Schedule A, B and C.

Respondents should note that Essendon Fields does not require EOIs to incorporate designs, cost information or unnecessarily elaborate artwork or presentations.

7.6 �Non-conforming EOI Submission

Essendon Fields (in its absolute discretion) may accept or exclude non-conforming EOIs from evaluation and assessment.

Respondents are required to submit EOIs which comply with this Invitation, but in addition, may also submit non-conforming EOIs.

� page 38


7.7 �Proprietary Information

Essendon Fields may release to all Respondents all clarifications and queries received from Respondents and Essendon Fields’ responses to those enquiries that are general in nature.

7.8 �Notifications and Debriefings

Essendon Fields will formally notify all Respondents of the outcome of the EOI process and advise the Respondent who has been selected as preferred Operator.

Essendon Fields reserves the right to publish the names of:

�� all Respondents and Respondent Members; and

�� short-listed Respondents and Respondent Members.

Essendon Fields will offer debriefings to all unsuccessful Respondents.

� page 39


RETURNABLE SCHEDULES

� page 40


Returnable Schedule A – Declaration

This deed poll is made by (Respondent)

Name of respondent

ACN / ARBN ABN

In favour of Essendon Fields Pty Ltd.

In this deed poll, capitalised terms have the same meaning as in this EOI.

This deed poll is governed by the law of the State of Victoria.

The Respondent provides this Submission in accordance with the requirements of the EOI. In preparing this Submission, the Respondent acknowledges that its Submission does not contain any false, misleading or deceptive misrepresentations, claims or statements.

By submitting its Submission, the Respondent acknowledges and agrees:

�� that the terms and conditions in the EOI are binding upon the respondent;

�� that it’s Submission is prepared in accordance with the EOI and is accurate, complete and not misleading;

�� that Essendon Fields Pty Ltd may reasonably rely on the Submission in accurately assessing compliance with the EOI, risks and risk management options and value for money in accordance with the EOI; and

�� that representations made in the Submission, when incorporated in any resultant contract, will be fully complied with by the Respondent.

EXECUTED as a deed poll

DATED this day of 20

Signature of Respondent or person authorized to sign the response on behalf of the Respondent Signature of Witness

Name (Block Letters) Name (Block Letters)

Position Held

Address of Witness

� page 41


Returnable Schedule B – Respondent Details

Respondents must provide details regarding the identity of the respondent including the follow:

1. name of organisation(s);

2. ABN and CAN;

3. corporate structure (e.g. Limited liability company);

4. address of registered office;

5. date established/incorporated;

6. telephone, email and fax details;

7. directors and principal shareholders (including names and addresses);

8. details of the ultimate beneficial holding company; and

9. contact person.

Name:

Position:

Telephone:

Email

Where the respondent comprises a consortium, the above information is required for each consortium member as well as the role that each consortium member will undertake.

Respondents must provide details regarding the respondent’s team composition and structure (including discipline), including:

1. A diagram illustrating the team structure;

2. The roles and responsibilities of each team member (at the entity level);

3. Corporate/entity structures of key team members including any joint venture partners;

4. Identification of key individuals within the respondent’s team and where they will sit in or investors; and the team structure.

� page 42


Returnable Schedule C – Response Requirements

Respondents will be required to provide the following information in their EOIs using the references provided below. Details of the Evaluation Criteria are included in Section 5.2.

CRITERION 1 – Project Understanding and Approach

�� A brief description of your understanding of the Essendon Fields Hospital and your desire to be involved.

�� A description setting out your approach and strategies to achieve Essendon Fields’ overall vision and objectives.

�� A description of the clinical services proposed to be provided and the size and staging of the project.

�� Page limit to be a maximum of 10 pages.

CRITERION 2 – Understanding of Commercial Principles

�� Respondents must nominate and describe their suggested commercial structure.

�� The matters that should be set out in all submissions, regardless of the respondent’s proposed commercial structure, must include details regarding:

– Contractual structure

– Confirmation of or comment on Essendon Fields’ proposed commercial principles, risk allocation and lease terms


� page 43


Returnable Schedule C – Response Requirements continued

CRITERION 3 – Technical Capability

�� Provide a summary that identifies the respondent’s capability and capacity to operate private hospitals of a similar type, nature and complexity.

�� Provide a summary that details the respondent’s capacity and experience in dealing with Health Funds, particularly in terms of Greenfield developments and ensuring early establishment of health fund contracts.

�� Provide a summary of up to five examples where the Operator delivers similar Services to those proposed for the Essendon Fields Private Hospital, including the manner of delivery of the service, including the model of care, and model of service delivery.

�� Provide a summarised CV for each key person of the development and operations team that highlights key achievements and contains their experience and capability of developing other comparable projects like the hospital.


CRITERION 4 – Organisational structure and resourcing

�� Provide your proposed organisational structure for the operation of the Hospital, accompanied by commentary that explains why these structures are suitable and appropriate.

�� Describe how the Respondent intends to interact with Essendon Fields and key stakeholders during the development and operation of the Hospital.


CRITERION 5 – Financial capacity

�� Financial statements prepared by an Accountant for the legal entity submitting the Response.

�� Balance Sheets and Profit and Loss Statements for three year historical and forecast periods.

�� Details of all debt facilities and financial covenants impacting on the Respondent.

�� Details of any current or pending legal action that could impact on the Respondent.

� page 44


APPENDICES

� page 45


Appendix A: Disclaimer

Essendon Fields has prepared this EOI document to give prospective Respondents background information on the Project.

Essendon Fields confirms that, by lodging a Submission each Respondent accepts that:

1. Each Respondent acknowledges that it has read, understood and accepted the terms and

conditions of this EOI document and that if a Respondent does not accept these terms, it must

immediately return this EOI document to Essendon Fields.

2. All descriptions, dimensions, references to conditions, statements, estimates and projections

contained in this EOI document (Information) are given in good faith and may or may not be

correct. This EOI document does not purport to contain all the information each Respondent

may require.

3. Each Respondent must conduct its own independent investigation, due diligence and analysis

in respect of the information in this EOI, fully inform itself and assess all matters arising from

the EOI Phase (including all matters regarding Essendon Fields’ requirements for the provision

of goods and/or services) and rely solely on its own enquiries and inspections as to the

significance, adequacy, accuracy, currency, reliability and completeness of the Information and

obtain independent advice from appropriate sources.

4. Essendon Fields and its Associates make no representation or warranty expressed or implied,

as to the significance, adequacy, accuracy, currency, reliability or completeness of the

Information or any information which may be provided in connection with it.

5. Essendon Fields expressly disclaims any and all liability relating to or resulting from the use

of such information by any Respondent or Respondent’s Associates in the preparation of a

Submission; and

6. To the extent permitted by law, neither Essendon Fields nor its Associates shall be liable to

any Respondent or any other person under the law of contract, tort (including negligence), the

principles of restitution or unjust enrichment or otherwise for any loss, expense, damage or

other liability which may arise from or be incurred or suffered as a result of anything contained

in (or omitted from) the information.

� page 46


Appendix B: Terms and Conditions

The terms and conditions governing this document are set out in this Appendix B.

No legal relationship

By lodging a Submission, the Respondent acknowledges that:

a. this document is not an offer or an invitation to treat;

b. except as specifically stated, no contract exists or will arise between Essendon Fields or

any Associate and any person in respect of the project by reason of this EOI document,

a submission or any stage of the Procurement Process unless and until the Contract

Documentation between Essendon Fields and the successful Respondent is executed;

c. the rights, powers and discretions given to Essendon Fields in this EOI document are not

pursuant to any contract between Essendon Fields and the Respondent, but rather are rights,

powers and discretions which Essendon Fields has as part of the EOI document;

d. despite the previous paragraph, by lodging a submission, the Respondent arising out of

this EOI document with respect to the consideration, the evaluation, the acceptance or the

rejection of any submission or the failure to consider, evaluate or accept any submission;

e. Essendon Fields has no contractual or other legal obligation to the Respondent arising out of

this EOI document with respect to the consideration, the evaluation, the acceptance or the

rejection of any submission or the failure to consider, evaluate or accept any submission.

Confidentiality and proprietary information in and use of EOI

Proprietary information

Copyright in this EOI document vests in Essendon Fields. A Registrant may copy, save electronically, or otherwise reproduce this EOI document for the purpose only of preparing and submitting its EOI.

A submission becomes the property of Essendon Fields upon lodgement by the respondent, and will not be returned to the respondent.

Personal information collected as part of the procurement process will be handled in accordance with the Information Privacy Act 2000 (Vic).

Subject to the terms and conditions, Intellectual Property Rights that may exist in a Submission will remain the property of the Respondent, or any other person legally entitled and so identified within the Submission. Any element of a Submission considered to carry any Intellectual Property Rights should be clearly identified by the Respondent within the Submission.

� page 47


Terms and Conditions continued

Confidentiality

Each Submission will, to the extent that it contains information that is not in the public domain, be held as Commercial-in-Confidence and will be treated as confidential by Essendon Fields. Essendon Fields will not disclose the contents of a Submission and EOI information, except as required by law.

Use of EOI by Essendon Fields and its Associates

By lodging a Submission, the Respondent and any Respondent’s Participants authorises and consents to the use of the information in the submission in the manner specified in this EOI and the Respondent and any Respondent’s Participant licenses Essendon Fields and each Associate to copy, adapt, modify, disclose or do anything else necessary in relation to, in Essendon Fields’ sole discretion, all material and information (including that material which contains any Intellectual Property Rights of the Respondent or any other person so identified with the Submission) contain in the Submission.

Probity

Probity principles

This procurement process will be governed by the following principles of probity:

a. open and competitive process;

b. fairness and impartiality;

c. transparency of process;

d. security and confidentiality; and

e. identification and resolution of potential conflicts of interest.

Submissions

Illegible content, alteration and erasures

Essendon Fields may disregard any content in a submission that is illegible and will be under no obligation to seek clarification from the Respondent.

Essendon Fields may permit a Respondent to correct an unintentional error in its submission where that error becomes known or apparent after the closing time.

Obligation to notify errors

If, after a submission has been submitted, the Respondent becomes aware of an error in the Submission (excluding clerical errors which would have no bearing on the evaluation of the Submission) the Respondent must promptly notify Essendon Fields of such error.

� page 48



Withdrawal of Submission

A Respondent who wishes to withdraw a submission previously submitted by it must immediately notify Essendon Fields of that fact. Upon receipt of such notification, Essendon Fields will cease to consider that submission.

Costs of Preparation of Submission

Under no circumstances will Essendon Fields or any Associates, be responsible for any costs or expenses incurred by a Respondent, any Respondent’s Participants, or any other third party (or any of their respective officers, employees, agents, affiliates or advisers) in the preparation and lodgement of a Submission.

Evaluation Process

Essendon Fields is not required, and does not intend, to release any specific details regarding the evaluation process.

Respondents who are not shortlisted may make a formal request to the Nominated contact for a debrief meeting. The nature and extent of the debrief meeting allowed will be at the absolute discretion of Essendon Fields.

Reliance on Information

By lodging a Submission, the Respondent:

a. warrants to Essendon Fields that the information contained in its Submission is true, accurate

and complete as at the date on which it is lodged, and may be relied upon by Essendon Fields

in its selection of short-listed Respondents; and

b. acknowledges that Essendon Fields will rely on the above warranty and undertaking when

evaluating the Submission.

Variations and addenda

Variations to this EOI document

Essendon Fields reserves its rights, in its absolute discretion and at any stage, to cancel, add to, or amend the information, terms, procedures, evaluation process timetable or protocols set out in this EOI document, without giving any reasons or notice to any Respondents.

Addenda

Essendon Fields may issue addenda to this EOI document to modify or clarify the EOI document in any manner and all such addenda shall become part of this EOI document.

� page 49



Essendon Fields’ right to suspend, end process etc.

Notwithstanding anything else in this EOI document, Essendon Fields may, in its sole and absolute discretion and at any time, amend, suspend, defer, terminate, abandon or reinstate this EOI process.

Other rights of Essendon Fields

Essendon Fields reserves its rights in its absolute discretion and at any time during the EOI to:

a. require additional information from a Respondent and/or Respondent’s Participants;

b. perform security, probity and/or financial checks and procedures in relation to the Respondent

or Respondent’s Participants (if applicable) and each party with an interest in the Respondent;

c. terminate further participation in the Procurement Process by any Respondent;

d. change its requirements, including, at any state, cancelling, adding to or amending the

information, terms, procedures, evaluation process and protocols set out in this EOI document;

e. change the structure or timing of the selection process or the basis on which a Submission is

submitted, evaluated or accepted;

f. accept or reject any or all Submission at any time for any reason;

g. change the scope of or not process with the Project.

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