02 December 2005

$132 million Newcastle Mater Hospital redevelopment contract signed

NSW Minister for Finance and Minister for the Hunter Michael Costa today announced the finalisation of the contract between NSW Health and the Novacare Consortium for the major redevelopment and enhancement of health services at the Newcastle Mater Misericordiae Hospital.

“The Mater redevelopment is a $132 million investment by the NSW Government in the provision of quality health care for Hunter residents,” Mr Costa said.

“Finalisation of the contractual arrangements will allow construction work to start on site in coming weeks.

“This partnership with the private sector means we are able to start the redevelopment of the Mater Hospital sooner than we otherwise would.

“Hunter residents will gain a range of new and expanded high quality health services when the redevelopment is completed in just over three years’ time.”

The redevelopment includes:

• $80 million redevelopment of the Newcastle Mater Hospital;
• $34 million construction of a new 96-bed acute mental health facility on the Mater Hospital site (including 10 additional acute mental health beds) to replace existing facilities at James Fletcher Hospital; and
• $18 million expansion of cancer radiation therapy facilities at the Mater, including the construction of extra equipment and refurbishment of existing facilities.

“The public private partnership model means we are able to deliver an upgrade to vital health services under one contract, at better value than a standard public sector arrangement.”

Under the contract, Novacare will construct the facility over approximately three

years and then operate some non-clinical services on behalf of the NSW Government

for around 25 years.

Mater and Hunter New England Health will continue to be responsible for the management and provision of all clinical and associated services.

“All staff, clinical and non-clinical, will remain employees of Mater and Hunter New England Health,” Mr Costa said.

“Non-clinical staff who provide catering, cleaning, security, building management, ground maintenance, waste management and stores management services will, however, work under the day-to-day management of Novacare.”

Novacare will be required to manage staff under the same framework of legislation, awards and policies that would apply to any government health employee.

The Novacare Consortium is made up of a number of organisations including:

• Abigroup (design and construction of new buildings; firm is also building the Newcastle Community Health Centre in Hunter Street)
• Medirest (catering, cleaning, security and stores management)
• Honeywell (maintenance and utilities management); and
• Westpac

“The NSW Government is committed to ensuring Hunter people have access to top quality health care services,” Mr Costa said.

“This project will bring much-needed mental health and radiotherapy services to this region, as well as a redeveloped Mater Hospital.

“Together with the new Community Health Centre already under construction, this project represents another major investment in the Hunter’s health infrastructure.”

For further information contact:

Katherine Martin for Minister Costa on 0419 255 934

Louise Morrissey for Hunter New England Health on 0428 107 681

For a range of health information, go online to www.health.nsw.gov.au