P3 Model Proven to Deliver World-class Health Care Infrastructure - Infomart - 0 views
www.fpinfomart.ca/doc/doc_display.php?key=pr|246200|ntnp|20150924|229942557
from heather p3 privatization
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National Post Thu Sep 24 2015
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The foundation of public-private partnerships, or P3s, in Canada was firmly cemented 20 years ago with the construction of the Confederation Bridge. Since then, hundreds of P3 projects have been built in almost every province, with the majority of those being health care facilities. In B.C. alone, there have been about 19 such health care projects, including two hospitals on Northern Vancouver Island currently under construction. P3 projects are also underway in Alberta, along with a new hospital in North Battleford, Saskatchewan.
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According to Amanda Farrell, President and CEO of Partnerships BC, health care projects are well suited to P3s, because of their inherent complexity. "There are a lot of complex mechanical and electrical requirements with these buildings," says Farrell. "There are infection control issues to consider, and health care equipment has very specialized and sophisticated needs."
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P3s help manage a project's scope, schedule, and budget, and shifts much of the risk to the private sector. In return the public benefits from facilities that are built on time and on budget, but the value of the P3 model goes far beyond the construction of a building, it lives on for decades in the operation and maintenance of the facility. "In the past, we've seen infrastructure deficits with a lot of our facilities, because of deferred maintenance" says Farrell. "But with a P3, a standard of performance quality in maintaining the asset continues for the life of the agreement, which typically is 30 years."
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P3s well-suited to health care environment While Farrell concedes that P3s suit some projects better than others, such as new hospital builds, she has seen a lot of innovation with health care P3s because of the collaboration between industry and clinical stake-
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holders during the development of bid proposals. Clinical planners work with the design and construction team to optimize clinical flow and function, which means the best possible outcome for patients and clinicians. "Industry is bringing world class expertise to these projects," says Farrell, "they have embraced the model, which has led to a lot of success, and we are seeing broad industry participation, with lots of local contractors involved."
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Kim Johnson, Chief Strategy Officer and Senior VP Commercial and Shared Services at Graham Group credits a supportive political environment and growing public acceptance of private sector involvement for the success of these large projects. "People understand that P3s provide a huge public benefit," he says, "and there is an extensive track record with these types of projects, especially in health care, where there is a critical mass of knowledge and expertise."
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Collaboration and continual learning lead to successes Canadian jurisdictions looked at what was happening in the UK and Australia in the 1990s with P3s, and refined that knowledge for use domestically. "We've learned from those mature markets, and made it even better, and become a leader globally," Johnson adds. Experience with large projects is that they can often run into problems with design, construction and maintenance, but under a P3 model there is a single production team that is performance based, drives innovation, manages costs, and delivers the project quicker.
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Two new Ontario health facilities have benefited from the P3 model, most notably the New Oakville and Humber River Hospitals, the prior set to open in the new few months.
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P3s show positive results Despite the wealth of P3 experience in Canada, there are still some naysayers who say these projects end up costing the public more, and contend that government should just build these facilities on their own.
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"We think it's simplistic to say that a P3 costs more in the long run than if government just built the projects on their own, because they are not taking into account the risk factor that is passed on to the private sector and the long-term cost of operating and maintaining facilities, which is built into the P3 agreement," says Farrell. "Under the right circumstances, P3s have been proven to deliver value for money."
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Johnson echoes those comments and adds that government could build these projects on their own but they will end up costing more. He adds, "with a P3, you can deliver the same project in less time and at less cost."