companies, investors and builders have found the interaction of building and equipment uncomfortable ... equipment servi
Princess Royal University Hospital, Bromley PROJECT STATUS OPERATIONAL
UME’s Role: Project management, sponsor, investor, equipping
PROJECT TYPE: PFI Managed Equipment contract
Consortium members involved
CONTRACT VALUE: EQUITY HELD: FINANCIAL CLOSE:
£11M 100% 22/03/2002
CONCESSION LENGTH: DATE COMPLETED:
31 years 24/03/2003
• • • •
HIGHLY COMMENDED BY THE NHS DESIGN REVIEW PANEL.
Barclays/Innisfree (Senior debt funder) Deloitte (Financial advisor) CMS Cameron McKenna (Legal advisor) GE medical systems (Maintenance contractor )
Client/referee Mike Smith Equipment Manager Estates & Facilities Management Orpington Hospital Sevenoaks Road Orpington, Kent, BR6 9JU Telephone: +44 (0) 1689 863 192 Email:
[email protected]
Healthsource Bromley is an equipment only health related PFI project and is the only one of its kind to date. The project is a self funded business, with its own set of PFI documentation and a self contained performance regime
We confirm that all services were carried out to all rules appropriate to the relevant trade or profession.
UME GROUP
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Princess Royal University Hospital, Bromley “Our manager, the Trust’s equipment manager and our maintenance sub contractors work closely together, to monitor the condition of the equipment. The Trust has a fixed cost for the service, and knows exactly what it receives within that” Paul Noake UME “The Trust no longer have to worry about the maintenance and repair of their equipment. Under the new PFI arrangements, life has been made a great deal easier as UME are responsible for ensuring its availability and any necessary repairs or maintenance. If any of the equipment fails, users have only to report it to the equipment services helpdesk, who will take care of the problem thereafter” Sam Johnston UME – Project Director
Description Healthsource Bromley covers a range of medical equipment for imaging, biomedical, laboratory and sterilisation areas and other equipment in virtually all departments within the hospital. In addition, the service provides the ongoing maintenance and life cycle replacement of this equipment, together with the provision of an in-house electro biomedical engineering team.
The project comprises: • Purchase of new medical equipment: £8.1M; • Responsibility for Trust transfer assets: £0.8M to be replaced when life expired; • The ability to purchase additional £1M assets, total £9.9M capital; • Life cycle replacement of all assets over a 30 year concession period; • Full managed equipment service, including on the Trust’s retained estate of medical equipment worth £7M. comprising planned preventative and reactive maintenance of equipment against an agreed performance regime. • The provision of equipment related services, principally replacement of spare parts, the performance of statutory testing of equipment, such as HTM testing and radiological protection activities and other equipment related services.
Design process/challenges The hospital opened on time and fully equipped in March, 2003. The PFI has operated successfully ever since, completing its first major life cycle replacement of the Trust transfer CT scanner in late 2005. Funds raised comprise £10.1M from Bank of Ireland and £1.1M from the sole shareholder, UME Investment, total £11.2M. The life cycle obligations require a facility that increases and decreases over time. We were able to agree a revolving facility with Bank of Ireland at an affordable cost to the Trust and which is fair and workable to both the equity and bank investors.
How UME made a difference We developed this product to solve a problem inherent in PFI procurement. The NHS, SPV companies, investors and builders have found the interaction of building and equipment uncomfortable within PFI projects. On this project however equipment risks are largely ring fenced within the equipment PFI, and the equipment provider operates under a performance regime suited to equipment, with appropriate risk and reward profiles. It also enables separate funding of equipment outside the building PFI.
Evaluation The maintenance service includes not only the maintenance of the equipment provided by the PFI but also the Trust’s own equipment. This results in a unified service for maintaining all equipment, irrespective of who is purchasing it, with the efficiency of the operation of the hospital benefiting from in-house expertise. The Trust receives a first class managed equipment service supported by a dedicated behind the scenes team effort. The success of this service is due to the excellent relationships between the Trust, UME and GE Healthcare. All staff involved in this service are dedicated to ensuring that the requirements of the contract are exceeded. Their professional attitude and pride ensures that the service the Trust receives is second to none. Repairs are conducted in a much more timely fashion and staff at the Princess Royal University Hospital are continually encouraged to work with PFI team. All of this has ensured that the service contributes to the overall efficiency of the hospital, and that equipment is operational when required to treat patients.
We confirm that all services were carried out to all rules appropriate to the relevant trade or profession.
UME GROUP
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