The Royal Thames Valley Hospital
PUBLIC MEETING21st Century Patient Care: Challenges &Opportunities A Vision of a Sustainable Healthcare Plan for theThames Valley
Dr Phillip Lee MB BS MSc (Oxon) BSc (hons)Member of Parliament for Bracknell Constituency
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Building
Sustainable
Staff
Access
Key Figures:• Projected capital fund of around £500 m• Preferred option –
single site M4 (J8/9)• At least 70% funded via capital resale• Expected pop. increase of 9% between 2008 & 2018
Care
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BENEFITS OF NEW HOSPITAL PLAN
Source: Site visits; Own Analysis
• Provide acute and specialist services on a single site • Improve access to diagnostics such as lab. & imaging• Appropriate treatment closer to home
• Improve financial resilience• Improve efficiency and effectiveness of services • Achieve lowest carbon footprint for UK hospital
• Optimising departmental & functional relationships• Make patient processing more efficient
• Good parking facilities• Public transport improvements• Better location for larger population
• New infrastructure required to meet increasing healthcare demands
• Provide ‘state-of-the-art’ facilities fit for purpose• Single en-suite bedroom for patients
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CURRENT HOSPITAL MAP/ LOCATION OF NEW HOSPITAL
Source: Own Analysis/ Autoroute Map
• Fragmented hospital landscape across region
• Larger hospitals mostly found on outskirts
• Inter-departmental services made more difficult by location disparities
• Long-term solution to fragmented hospital landscape is consolidation of acute hospital sites on to a single site
• Regional hospital situated on M4 most cost effective and efficient solution to tackle future healthcare demand in our region.
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DEMOGRAPHIC ANALYSIS I
Forecasted and total regional population estimates by district for 2011 and 2022 In 000’
1.1%
Source: Office for National Statistics: Sub-national population projections; East Berkshire Primary Care Trust, Annual Report 2010
Current hospital landscape showing difficulties in dealing with increasing population. It will have to adapt to its future trends.
DEMOGRAPHIC ANALYSIS II
Percentage of the population aged 65+ in local authorities in England: estimates andprojections, 2005-2035In %
Population projections for area indicate that over period to 2019 an ageing pop. will lead to change in the nature and an increase in the type of health service provision required in future.
Source: Office for National Statistics: Sub-national population projections; East Berkshire Primary Care Trust, Annual Report 2010 5
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FINANCING THE PROJECT I
The total capital recovered is divided between Option 1 and Option 2:
• OPTION 1: Residential development on 70 per cent of the total site area
• OPTION 2: Residential development on the current building footprint
The table on the next slide shows the estimated receipts that would be realised fromconsequent land sales and accommodation development.
I acknowledge that land values can be volatile and uncertain. I have used the latestproperty development costs available.
The actual property value varies according to land purchase price, which will have tobe deducted from the total capital raised.
Source: Own Analysis, Estimates based on current market values from Primelocation.comNotes: All numbers are estimates:Assuming that the properties would be converted into residential flatsAverage local area 2 bed flats valuation from Prime LocationAssuming that 2 bed flat = 75m2
FINANCING THE PROJECT II
Summary Capital recovered from Hospital SalesHospital Gross
Internal Area (m2)
Land land(Hectare)
Land area (m2)
Develop 70% of land area
Average 2 bed flat in the area
Property Value Option 1
Property Value Option 2
Sell- off
Option 1 Capital recovered
Option 2 Capital Recovered
Townlands Hospital
5,873 2.76 27,600 20,700 £300,000 23,492,000 110,400,000 0% 0 0
Upton Hospital
11,485 1.67 16,700 12,525 £225,000 34,455,000 50,100,000 65%
22,395,750 32,565,000
Heatherwood Hospital + Aggregate Site
27,083 17.73 177,300 132,975 £350,000 126,387,333 827,400,000 65%
82,151,767 537,810,000
Wexham Park Hospital
60,207 24.40 244,000 183,000 £300,000 240,828,000 976,000,000 100%
240,828,000 976,000,000
Wokingham Community Hospital
4,565 1.85 18,500 13,875 £275,000 16,738,333 67,833,333 65%
10,879,917 44,091,667
St Marks Hospital
6,849 1.41 14,100 10,575 £325,000 29,679,000 61,100,000 100%
29,679,000 61,100,000
King Edward IIV Hospital
3,710 0.80 8,000 6,000 £325,000 16,076,667 34,666,667 50%
8,038,333 17,333,333
Wycombe General
45,202 6.70 67,000 50,250 £300,000 180,808,000 268,000,000 65%
117,525,200 174,200,000
Marlow Community Hospital
1,422 0.3185 3,185 2,389 £300,000 5,688,000 12,740,000 0% 0 0
Total Value
668,464,333 2,395,500,000 511,497,967 1,843,100,000
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RTVH PROJECT COST
On the basis of the above analysis:
• Total cost of new acute hospital for the region would be in the region of £500-550 million.
• Further expenditure required on community sites may take total cost to ~ £750 million.
• Funding could be secured from within region. Even if additional capital was required from central government, I believe that this would be more than justified for two reasons:
• Projected local increase in population over the coming decades would support a viable business plan within any future regional health economy
• Relative under-funding (when compared to other parts of country) of the region’s healthcare spending over the last decade (see comparison table 7 in the Appendix)
Summary of New Services at New Hospital
• Primary Trauma Centre
• 24 Hour Cardiac Unit
• 24 Hour Stroke Unit
• Enhanced Surgical Services
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Summary of Enhanced Community Services
• Specialist Out-Patient Appointments
• Post-Operative Rehabilitation
• Chronic Care Treatment, e.g. renal dialysis
• Minor Injury Units
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Conclusion
• Remember - total cost of project is <0.1% of central government’s annual NHS spending budget.
• This plan will help ensure that the very best healthcare is provided to >650,000 local people for the next 40 years.
• Hence, deciding to spend £750 million in one of the most affluent and economically-vibrant parts of Europe seems a modest investment to me.
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Thank You
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