The needs assessment proposes that the hospital will operate as a 244-bed hospital, comprising a 92-bed inpatient medical ward, a 30-bed inpatient surgical ward, a 32-bed intensive care unit with 18 additional flexible beds during peak season, a 90-bed emergency department, and 30 outpatient clinic rooms. The gross internal area of this provision has been estimated by 45,299m².
An estimated 731 clinical members of staff, including 194 physicians and 370 nurses, are required during the normal operating period, with additional staff required during seasonal peaks (i.e. Ramadan and Hajj Seasons).
Financial Case, Value for Money and Alternatives to the Project:
The approach adopted to conduct a quantitative Value for Money (VFM) exercise was to develop detailed cost forecasts based on certain technical/financial assumptions for two scenarios;
- If the project is implemented by MOH through the historical/conventional manner (i.e. MOH Conventional Procurement), or
- If the project is implemented by MOH through the PPP model (PPP Shadow Bid).
Both scenarios were modeled in order to compare the differences in MOH costs based on the present value.
The results show present value of costs for the Project PPP Shadow Bid to be lower by SAR 254 M. or by 6.23% for the Hospital, compared to MOH Conventional Procurement approach. In addition, it is expected to have significant qualitative benefits, including improved infrastructure and better clinical outcomes.
The main alternative model, considered by MOH for this Project, was to offer it as a “build, maintain and transfer” project – i.e. excluding clinical services. However, MOH believe that it is preferable to include clinical services in the Project, due to the need to drive greater efficiency in the provision of clinical services in the Hospital.