❓ A WA parliamentary question seeks details about the agreement between the State Government and St John of God regarding the construction and operation of a private hospital integrated with the Midland Health Campus, focusing on land ownership, costs, and shared services. The answer clarifies the lease arrangements, cost-sharing, and service provisions.
AnsweredQoN 8244Legislative Assembly
QuestionView source ↗
I refer to the announcement that Saint John of God (SJOG) will be spending $70 million to construct a 60-bed private hospital on the same site as the Midland Health Campus:
(a) has SJOG purchased, or signed a contract to lease, the land owned by the State Government on which they will be constructing their 60-bed private hospital;
(b) what is the size of the land parcel purchased, or leased, by SJOG for this purpose;
(c) what is the total size of the entire Midland Health Campus site, the land situated being Lot 515 Deposited Plan Folio 403 DP50077, certificate of titles 2696-97;
(d) what is the most recent estimate or appraisal of the commercial land value of the entire Midland Health Campus site as given by the Office of the Valuer General;
(e) has the parcel of land which will be used by SJOG for the private hospital been independently valued by the Office of the Valuer General and, if so, what was the most recent estimate on the value of the land;
(f) how much money, if any, has SJOG paid for the purchase of the land, or what is the value of the lease for the land (per annum);
(g) SJOG has indicated that some of the services will be shared with the public hospital (the Midland Health Campus, also operated by SJOG on the same site) – exactly which services will be shared;
(h) of those services to be shared, will the State Government be sharing both the construction costs and future operating costs of those services with SJOG, or will the State Government be covering the full cost of those particular services which will also be accessed by private patients; and
(i) how does the State Government intend to obtain cost recovery from private patients sharing services with the Midland Health Campus?
(a) has SJOG purchased, or signed a contract to lease, the land owned by the State Government on which they will be constructing their 60-bed private hospital;
(b) what is the size of the land parcel purchased, or leased, by SJOG for this purpose;
(c) what is the total size of the entire Midland Health Campus site, the land situated being Lot 515 Deposited Plan Folio 403 DP50077, certificate of titles 2696-97;
(d) what is the most recent estimate or appraisal of the commercial land value of the entire Midland Health Campus site as given by the Office of the Valuer General;
(e) has the parcel of land which will be used by SJOG for the private hospital been independently valued by the Office of the Valuer General and, if so, what was the most recent estimate on the value of the land;
(f) how much money, if any, has SJOG paid for the purchase of the land, or what is the value of the lease for the land (per annum);
(g) SJOG has indicated that some of the services will be shared with the public hospital (the Midland Health Campus, also operated by SJOG on the same site) – exactly which services will be shared;
(h) of those services to be shared, will the State Government be sharing both the construction costs and future operating costs of those services with SJOG, or will the State Government be covering the full cost of those particular services which will also be accessed by private patients; and
(i) how does the State Government intend to obtain cost recovery from private patients sharing services with the Midland Health Campus?
AnswerView source ↗
Answered
7 August 2012
Responded by
Minister for Health
Response time
48 days
(a) The 60-bed private hospital is integrated with the public hospital facility. St John of God Midland Health Campus (Operator) has entered into a Development Lease to provide access for construction and will enter into an Operating Lease for the operational phase.
(b) The lease area is 80,438m
2
. Given that the private hospital is an integrated facility (with the public hospital) there is no separately defined parcel of land which applies to it. Under the lease the State has the right to excise land for certain purposes such as road widening at pre-defined locations.
(c) 80,438m
2
.
(d) $32,175,000 GST inclusive as at 30 August 2011.
(e) Given that the private hospital is an integrated facility there is no separately defined parcel of land which applies to it.
(f) St John of God is not purchasing any portion of the MHC site. No separate rent is payable by the Operator under the Operating Lease as the consideration for the grant of the Operating Lease is in the terms of the Services Agreement.
(g) Radiology, pathology and pharmacy services.
(h) The State Government is sharing the construction costs with the Operator in an agreed proportion calculated based on the gross floor areas of the public and private hospital facilities. The future operating costs for the shared services is borne by the Operator as the State only pays the Operator:
- for the provision of actual public patient treatments (outputs) based on a price per treatment; and
- a facility lifecycle allocation (which only relates to the public component of shared services).
Where the Operator elects to use any part of the private hospital facilities or the private proportion of shared infrastructure to provide services to public patients this will be at no extra charge to the State.
(i) There is no requirement for cost recovery by the State Government for costs associated with private patient use of shared services at the MHC on the basis that the cost of the shared services is borne by the Operator and the State Government's payment to the Operator is based on the number of public patient treatments for a given price per treatment.
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(b) The lease area is 80,438m
2
. Given that the private hospital is an integrated facility (with the public hospital) there is no separately defined parcel of land which applies to it. Under the lease the State has the right to excise land for certain purposes such as road widening at pre-defined locations.
(c) 80,438m
2
.
(d) $32,175,000 GST inclusive as at 30 August 2011.
(e) Given that the private hospital is an integrated facility there is no separately defined parcel of land which applies to it.
(f) St John of God is not purchasing any portion of the MHC site. No separate rent is payable by the Operator under the Operating Lease as the consideration for the grant of the Operating Lease is in the terms of the Services Agreement.
(g) Radiology, pathology and pharmacy services.
(h) The State Government is sharing the construction costs with the Operator in an agreed proportion calculated based on the gross floor areas of the public and private hospital facilities. The future operating costs for the shared services is borne by the Operator as the State only pays the Operator:
- for the provision of actual public patient treatments (outputs) based on a price per treatment; and
- a facility lifecycle allocation (which only relates to the public component of shared services).
Where the Operator elects to use any part of the private hospital facilities or the private proportion of shared infrastructure to provide services to public patients this will be at no extra charge to the State.
(i) There is no requirement for cost recovery by the State Government for costs associated with private patient use of shared services at the MHC on the basis that the cost of the shared services is borne by the Operator and the State Government's payment to the Operator is based on the number of public patient treatments for a given price per treatment.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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