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IS THERE A PLACE FOR THE OPERATOR-LED HOSPITAL PPP IN AUSTRALIA? AN ANALYSIS OF THE PAST, PRESENT AND FUTURE

International Construction Law Review

IS THERE A PLACE FOR THE OPERATOR-LED HOSPITAL PPP IN AUSTRALIA? AN ANALYSIS OF THE PAST, PRESENT AND FUTURE

Rebecca Eyers1

Technical Director, Health Sector Lead – Victoria, AECOM

ABSTRACT

The use of Public-Private Partnerships (PPPs) to deliver social infrastructure in Australia is not new, and the bundling of contracts for design, construction, finance and maintenance, can provide value for money for suitable projects. A full outsourcing model, where the private sector also provides core services, such as clinical services for a hospital, may provide further benefits. This article considers whether improvements to the PPP model and the performance of the Northern Beaches Hospital (NBH) PPP, the first operator-led PPP in 15 years, mean it is time to revisit the operator-led model for the delivery of public health services.

INTRODUCTION

Public-Private Partnerships (PPPs) are one of several models employed for the procurement of public infrastructure. Representing approximately 10 per cent of public infrastructure investment in Australia,2 PPPs have been used to deliver over 1653 projects across transport, water and sewerage, energy, justice, health, education, and housing sectors.
The use of the PPP to deliver social infrastructure in Australia, including public hospitals, corrections facilities and schools is not new, and the bundling of contracts for design, construction, finance, maintenance, and ancillary services, such as building management, waste management
Pt 1] Is There a Place for the Operator-Led Hospital PPP in Australia?

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