Johns Hopkins Phase II Report Released

Bermuda Hospitals Board (BHB) with the Ministry of Health and Bermuda Hospitals Charitable Trust (BHCT) today released the Johns Hopkins Medicine International (JHI) Phase II Report and outlined the next steps for developing its acute care services on the same site as the current King Edward VII Memorial Hospital (KEMH) in Paget.

The Phase II Report found that the current KEMH floor space needs to be increased by about 50% in order to provide the acute care services needed by the Bermuda community. However, rather than a complete rebuild, a phased combination of construction and renovation will be used over the next five years, with a 25 year plan of overall development to ensure the same site project is more affordable and manageable.

The Report was initially undertaken in order to review BHB’s comprehensive Estate Master Plan which was completed in 2005. The JHMI Phase I Report was released earlier this year and considered the healthcare data on which the 2005 Estate Master Plan was based. The JHMI Phase II Report has looked more closely at the healthcare planning, costs and site usage and proposes a sustainable plan of development for the existing acute care hospital site over time without infringing on the neighbouring Botanical Gardens.

Key points from the report include:
• Develop two new patient facilities on the KEMH site over the next five years
• Extend the life of the existing KEMH building by relieving pressure (with new facilities) and carrying out renovations over the next five to six years
• Plan a sustainable phased development of the KEMH site over 25 years or more
• Plan relocation of Continuing Care Unit and Staff Housing to take place in a 5 to 10 year development period at which further construction on the KEMH could take place
• Manage MWI as a separate development project

“The completion of the Phase II Report ends a period of review. This due diligence by the world renowned Johns Hopkins has enabled us to build a conceptual sustainable development plan for our acute care facilities on the existing hospital site,” says Herman Tucker, Chairman. “BHB’s vision is to be the first choice for health and wellness and as a Board we are focused on ensuring that we raise the bar on the standard of patient care. This means working to provide great service, modern technology and high quality facilities. Although the review we are releasing today focuses on our facilities, it is just a part of an overall strategic plan to develop staff and establish a consistently high quality of service and medical care.”

David Hill, CEO adds: “BHB now has a 25 year plan to guide the sustainable development for our acute facilities in a way that is affordable for Bermuda, is structured into manageable-sized projects and meets a critical community mandate – to develop our acute care hospital on our existing site. While later stages can adapt to the climate and needs of the times, we have a very clear agenda for the next five years from Government to build two new wings for the hospital, a central utility plant and completely renovate the existing KEMH building so that we can extend its useful life.”

The two new wings will comprise an Ambulatory Care Centre, including Oncology, Dialysis, Asthma, Diabetes and visiting international specialists, and a Patient Tower (called the hospital Phase 2 in the JHI Phase II Review) which will include Emergency services, some diagnostic equipment and 90 single bed ensuite patient rooms. The Central Utility Plant (CUP) includes waste management, water chilling, steam generating and Laundry.

BHB is at a very preliminary stage in the new build project. The next step is to finalise a Business Case on how to deliver this project. The JHI Phase II Report estimates costs of construction to be about $260 million and renovations to cost approximately $55 million. BHB is working with KPMG, an organisation with experience in complex construction projects internationally, to review how to provide the best value for money for Bermuda. Once this is done appropriate governance and advisory teams will be established. At this early stage there are no designs, but a conceptual site usage plan. Designs will be developed in as part of the project delivery process.

Malcolm Butterfield, Managing Director of KPMG Advisory Limited (KPMG) says: “There are many different ways to deliver a large project such as this. Public private partnership delivery models allow for the transfer of certain risks to the private sector. We have recommended a Design, Build, Finance, Maintain delivery model to BHB and will continue to work with BHB to ensure that we identify the option that offers Bermuda the best value for money.”

The JHI Phase I and Phase II Reports were jointly funded by BHB, the Ministry of Health and BHCT. The BHCT and Ministry will continue to be involved in plans going forward. BHCT will be the main fundraiser of charitable donations for the new constructions.

Philip Butterfield, Chairman of the BHCT, says: “The rebirth of KEMH will be one of the largest capital expenditures Bermuda has undertaken and it is important that we get it right. We want to build a cost-effective hospital that Bermudians take pride in, that Bermudians appreciate and that Bermudians deserve. With this new approach I believe we have found a solution that Bermuda can truly afford. This will give our donors greater confidence when they consider the funding of this project. I would like to thank David and his team, as well as Johns Hopkins Medicine International, for their vision and for capturing the needs of health care through this report.”

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