SaHF DMBC Volume 1 Edition 1.1.pdf - Shaping a healthier future

Build new Local Hospital facilities
Dispose of estate when changing the site to a Local Hospital (net receipts from
disposal)
Cover high risk and significant risk backlog maintenance (this is included because
backlog maintenance is assumed to be one off additional spend over and above the
ongoing programmes to replace assets and the requirement differentiates the options
as it is not required for sites becoming Local Hospitals).
The capital estimates for Options B and C were derived from the extensive work done on
Option A by pro-rating costs and values as appropriate, except for Ealing under Option C
and Charing Cross under Option B where an estimated range was provided by the estate
advisors.
In options where Imperial College is impacted by changes (Charing Cross in Option A and C,
and Chelsea and Westminster in Option B), a capital cost equivalent to the estimated NHS
contribution to relocating the College in acute premises has been included (this excludes
additional potential NHS capital contributions to provide teaching space in out of hospital
hubs and GP practices). This amounts to £35 million in Options A and C and £18 million in
Option B.
Based on consultation feedback for Trusts impacted, capital has been estimated for activity
flowing out of NW London sector. Estimates of activity flows were used to estimate the
requirement for new beds and the feedback from Trusts from out of sector who responded to
the consultation was applied to assess the cost.
Land and capital receipts have been estimated on the basis of market value assuming
planning permission for residential use. To be prudent, an additional 20% risk adjustment
discount has been applied.
With these planning assumptions, revised capital estimates have been assessed for the
three shortlisted options as set out in Figure 9.79.
9d. Decision making analysis stage 6 and stage 7 394