Southmead Hospital

Bristol

Project Value - £430m

Project Sector - Health

UK

About The Project

Project Company: The Hospital Company (Southmead) Limited

Concession Length: 35 year

Expiry Date: 30/09/2045

General Project Overview:

The Southmead Hospital is a new hospital project which incorporated the design, build, finance and maintenance of the facility.

A concourse provides access to the medical wards and departments. Formed by 3 interlinked atria the concourse hosts two cafes and one patient shopping facility.

The bedroom wings are located on the eastern side and wester clinical block houses 24 operating theatres, intra-operative MRI suite, 48 critical care bedrooms, advanced imaging suites, cardiac catheter labs and endoscopy unit. Helipad is located closed to the Emergency Department providing optimum access for critically ill patients.

The multi-storey car park was opened as a part of the phase 2 and is located within the main building extension. The carpark has more than 400 spaces for patients and visitors to use.

Services Overview

The Services delivered as a part of the project are as follows:

  • Estates Services including
  • Grounds Maintenance Services
  • Pest Control Services
  • Helpdesk Services
  • Energy and Utilities Management

On 15 January 2018 Carillion announced its liquation which impacted six projects managed by HCP including Southmead Hospital. Immediately HCP provided additional financial management to deal with its impact and to ensure efficient and effective financial management of the Projects continued throughout a period of change. Phase 1 – Agent of Operations  Continuous communication with the Board, lawyers and Funders.  Preparation and analysis of various scenarios in the Financial Models, setting out the potential impact of additional costs to the Cover Ratios and Shareholders’ Distributions.  Processing, analysis and tracking of weekly set-off costs including subcontractor costs, management time and payroll costs.  Identifying and resolving any issues highlighted by the set-off costs analysis including duplication of costs, insufficient support, inconsistent application of costs and costs submitted outside the scope of the Agent of Operations Contract (saving Southmead circa£350k). Phase 2 – Reconciliation following Appointment of Permanent Provider  Performing an Agent of Operations final account reconciliation including: o Analysis of final invoice submitted to determine whether any costs had been accelerated to fall into the Agent of Operations period; o Sample check of invoices; o Identifying and pro-rating of all annual payments. Reconciliation process saved Southmead circa £20k. Phase 3 – Settlement with Official Receiver  Managing the settlement process with the Official Receiver, including preparing and providing ProjectCo’s calculation and reviewing several iterations of counter claim.  HCP lead settlement negotiations; our involvement culminated in a full and final settlement being agreed amounting to only 5% of the first offer made to ProjectCo by the Official Receiver. This process saved Southmead circa £2.7m.

Financial Management provided post Service Provider Liquidation (Helen Shepherd, October 2019)

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