Economic appraisal informs vital capital upgrade at a teaching hospital in Victoria.

SGS performed an economic appraisal of capital upgrades at a Victorian teaching hospital with high level maternity capabilities, including the ability to provide the full spectrum of public antenatal, perinatal, and postnatal care for complex pregnancies and high-risk births.

Three key problems that impacted the hospital’s current and future service delivery included:

  • Consistently operating beyond its current physical capacity, with a clear inability to service forecast demand growth
  • Ongoing challenges managing access and demand and meeting Key Performance Indicators, with the site configuration and system of care impacting patient flow and efficiency
  • Working with outdated and ageing infrastructure, limiting the hospital’s ability to implement contemporary service models, meet Australasian Health Facility Guidelines, practice contemporary infection control and improve the patient experience.

SGS contributed three elements of analysis to the full business case for the capital upgrade options of the hospital. This included:

  • An assessment of the economic, social and environmental impacts of the upgrade options
  • A cost benefit analysis of the upgrade options using HINSW’s Cost Benefit Guidelines & Toolkits
  • An analysis of additional value creation and capture opportunities that should be future explored.
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