01 November 2022
The review of the Our Hospital Project has issued its report and recommendations to the
States Assembly.
The review led by the Minister for Infrastructure, Deputy Tom Binet, found the current plan
for a new hospital at Overdale is no longer affordable or appropriate within the funding
approved by the States Assembly.
It recommended the plan be replaced with a phased development across two or more
sites, including Overdale, Kensington Place and the existing hospital site at Gloucester
Street.
The review was ordered under the Chief Minister’s 100-day Plan to consider whether any
changes can be made to the hospital project to deliver a more affordable and appropriate
alternative.
The review took into consideration evidence from more than 60 key stakeholders and
undertook visits to various healthcare facilities in Northern Ireland.
It found the Our Hospital Project is no longer achievable within the £804.5 million funding
approved by the last States Assembly, and that it would cost between £70 million and £115
million more under current market conditions.
It found a simple relocation of the current plans to the existing hospital site at Gloucester
Street would also be unaffordable and would face significant other challenges, including
planning, and risk arising from working within and adjacent to an operational hospital site.
Ministers provided clear direction that construction of new hospital facilities should
commence within the current electoral term, and the review did not consider a new site, as
this would not have enabled the delivery of a new hospital within the required timescale.
It considered the following options
- A single development of a new hospital at Overdale significantly smaller than the
current plans
- A phased development of a significantly smaller hospital at Overdale
- A phased redevelopment of the hospital at its current site
- A phased redevelopment of the hospital at its current Gloucester Street site and on
the adjacent Kensington Place site
- A phased development over two or more sites including Overdale, Kensington Place
and Gloucester Street
The review found a phased development over two or more sites including Overdale,
Kensington Place and Gloucester Street, if required, offered the best opportunity to make
the scheme more affordable and appropriate, and to manage the risk of costs rising
significantly once the project is underway.
The report noted that it is challenging in the current uncertain financial climate to give
precise figures in relation to the extent of saving that can be achieved.
But it identified the following potential savings at today’s prices from a phased
development over two or more sites:
- Up to £50 million from the reduced need for new road infrastructure and land
acquisitions
- Up to £30-60 million from separating the scheme into smaller constituent parts,
opening up procurement, including to more local contractors and enabling more
competitive bids
- Up to £15-30 million from future digital healthcare services delivery
- Up to £15-30 million from modern methods of construction for some buildings
- Up to £15-20 million from the market value of healthcare sites no longer required
The report noted that a phased development would open procurement to smaller
contractors, which would lead to more competitive bids and make it more possible for
local contractors to participate, keeping more of the money spent within the Jersey
economy.
The review recommended the following schedule:
- Phase 1 – Development at Overdale to be commenced within 24 months with a 36-
month programme to completion
- Phase 2A – Development at Kensington Place or Overdale to be commenced within
36 months with a 36-month programme to completion
- Phase 2B - Development at the current hospital site at Gloucester Street to be
commenced within 72 months, with a 24-month programme to completion.
The review found that mental health services could be established at a separate standalone
location and recommended a review of the requirements to commence immediately, with
proposals on site within 36 months and a 24-month construction programme to
completion.
The review recognised that the existing Jersey General Hospital must be kept safe whilst
the various developments are constructed and noted that additional funding is currently
being made available for this in the event that it is required.
The Minister for Infrastructure, Deputy Tom Binet, said: “We believe we have identified a
solution which will give Jersey the new hospital facilities it needs without significant delay,
while keeping the costs affordable and risks managed in challenging economic times.
“I would like to thank everyone who helped with this review and enabled us to complete it
in such a short time.”
Following the review a number of practical steps will now be taken, including the necessary
design and decision making to put these proposals into effect.
The review team was led by the Minister for Infrastructure, Deputy Tom Binet, and
also comprised the Minister for Health and Social Services, Deputy Karen Wilson,
and the Assistant Minister for Health and Social Services, Deputy Rose Binet.
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