21 December 2007

Contract signed for construction of new Orange Base Hospital

NSW Minister for Health, Reba Meagher, today announced the finalisation of the contract between NSW Health and the Pinnacle Consortium for the major redevelopment and enhancement of the Orange Health Service.

"This redevelopment is a $214 million capital investment by the NSW Government in the provision of quality health facilities for the local community of Orange and the surrounding areas," Ms Meagher said.

"The new health campus will be built on the Bloomfield Hospital site and will provide people living in the Central West with local access to a comprehensive range of health services."

Ms Meagher said the redevelopment, which represents the biggest investment in health infrastructure outside of the metropolitan area, was expected to be completed in 2010.

The redevelopment includes:

• The $160 million redevelopment of the Orange Base Hospital
• The $34 million construction of new tertiary mental health facilities
• $18.8 million for new cancer radiation therapy facilities
• $1.6 million for oral health facilities.

"Importantly, this project will bring much-needed public radiotherapy services to this region," Ms Meagher said. "The new radiotherapy facility will provide an accessible, affordable and locally-based integrated cancer care services for the residents of Central Western NSW."

Ms Meagher said the Orange Health Service redevelopment is the first partnership with the private sector in the Central West.

"The public private partnership model means we are able to deliver an upgrade to vital health services under the one contract and at better value than a standard public sector arrangement," Ms Meagher said.

The Pinnacle Consortium comprises Babcock and Brown as sponsor, Hansen Yuncken as builder and Spotless Group as facilities manager across the Orange campus as well as the Bathurst Hospital campus.

Under the contract, Pinnacle will construct the new Orange Facilities over approximately two and a half years and operate selected non-clinical services for both Bathurst and Orange hospitals on behalf of the NSW Government for around 25 years.

Non-clinical staff who provide cleaning, security, building management, ground maintenance, waste management and stores management services will have their employment terms and conditions protected and will work under the day-to-day management of Pinnacle.

The Greater Western Area Health Service will continue to be responsible for the management and provision of clinical and associated services.

Pinnacle will be required to manage these staff under the same framework of legislation, awards and policies that would apply to any government health employee. These protections are spelt out in the Labour Services Agreement and cannot be changed over the life of the contract.

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