NHS Grampian Approved Minute 6 November 2012

APPROVED NHS GRAMPIAN

Minute of Meeting of GRAMPIAN NHS BOARD held in Open Session on Tuesday 6 November 2012 at 10.00am in the Seminar Room, Curl Aberdeen, Eday Walk, Aberdeen

Present Mr Charles Muir Vice-Chairman Mr David Anderson Non-Executive Board Member Mr Raymond Bisset Non-Executive Board Member Mr Richard Carey Chief Executive Dr Roelf Dijkhuizen Medical Director Mrs Sharon Duncan Non-Executive Board Member Mr Alan Gray Director of Finance Mrs Jenny Greener Non-Executive Board Member Professor Mike Greaves Non-Executive Board Member Mrs Linda Juroszek Non-Executive Board Member Mrs Christine Lester Non-Executive Board Member Mr Terry Mackie Non-Executive Board Member Professor Val Maehle Non-Executive Board Member Sir Lewis Ritchie Director of Public Health Mrs Elinor Smith Director of Nursing and Quality

By Invitation Mrs Jackie Bremner Project Director – Forres, Woodside, Tain and Health Village Projects Mr Ross Davidson Finance Manager Mrs Laura Gray Director of Corporate Communications/Board Secretary Dr Annie Ingram Director of Workforce Mr Stan Mathieson Commercial and Development Manager Mr Graeme Smith Director of Modernisation Dr Pauline Strachan Chief Operating Officer/Deputy Chief Executive

Attending Miss Lesley Hall Assistant Board Secretary

Item Subject

In the Chairman’s absence, Mr Muir, acting as Chair, welcomed everyone to the meeting.

1 Apologies These were received from Councillor Bill Howatson, Councillor Barney Crockett, Councillor Anne McKay, Councillor Anne Robertson and Mr Mike Scott

2 Forres, Woodside, Tain (FWT) Bundle Project – Outline Business Case and Outline Business Case Addendum

Mrs Bremner, Project Director, referred to her paper which explained that the Forres Woodside and Tain projects were being progressed as part of a hubCo bundle of three projects. This was the first hubCo Bundle Project in Scotland using the hubCo Design, Build, Finance and Maintain (DBFM) Service Concession contract involving three

1 Item Subject

projects over two Heath Board areas. Although there were three separate outline Business Cases there would be a single Full Business Case and a single Scottish Futures Trust (SFT) contract (Project Agreement). The three projects had been bundled as a single hubCo project to help ensure value for money by sharing overhead costs between the relatively small projects.

Mrs Bremner reminded the Board that it had previously approved the Forres Outline Business Case (OBC). The Addendum to the OBC being presented explored the latest costs for the preferred option as it was more than one year since approval had been given. The Woodside OBC explored various options and the preferred option was 4(a) New Build Marquis Road which delivered best value for money based on Equivalent Annual Costs (EAC) and Cost per Benefit Point, accepting that the “do minimum” option was included for baseline purposes only.

NHS Highland was considering the Tain OBC Addendum at its Board meeting on the same day.

All three projects had been reviewed and were considered to be consistent with the strategic priorities of NHS Grampian, NHS Highland and NHS Scotland. The Woodside and Forres projects were consistent with the national Quality Strategy and both NHS Grampian’s Health and Care Framework and Healthfit.

Mrs Bremner went through the cost of the preferred options and highlighted the capital funding of £1.577m required which, with the exception of the Forres land already purchased, had been factored into capital plans for 2012/13 and 2013/14. She advised that the unitary charge costs had been scrutinised by NHS Grampian’s financial advisers, PricewaterhouseCoopers, and SFT and were considered to be reasonable. The total unitary charge payable by NHS Grampian for both projects was £132k per annum, being approximately 10% of the total of £1.3 m per annum. For the two projects there would be additional recurring revenue costs of £0.181m and non recurring revenue costs of £0.183m.

Mrs Bremner explained the financial assumptions and risks which included developing occupancy agreements with the GP practices that would be occupying the buildings. She advised that there would be an NHS Public Dental Practice in the Woodside Development. An assumption had been made that its costs of £116k would be met from Dental Non Cash Limited funding. However, if this funding was not available, NHS Grampian would have to provide funding.

Mrs Bremner outlined the key approval dates to financial close and start on site. These were subject to discussion with Scottish Government Heath Directorate, SFT and hubCo to confirm if the programme could be revised so that financial close could be achieved in March 2013 and start on site by April 2013. This would mean the Board approving an FBC outlining a pre-stage 2 submission “predicted maximum cost” in February 2013.

Mrs Bremner explained the stakeholder involvement on both projects, which had included local communities, patient and public representatives in shaping both projects.

2 Item Subject

The paper included a table showing how the Forres and Woodside Projects would help mitigate a number of NHSG strategic risks. There were two specific risks relating to the Woodside project regarding the biomass planning application and approval.

Mr Muir thanked Mrs Bremner for the helpful explanations. He stressed the importance of the developments in the context of public health and of tackling health inequalities. Mrs Bremner and her colleagues clarified a number of queries raised by Board members about the risks, sub hubco and the provision of enhanced services from GP practices.

Mr Smith advised that it was important to see the developments as investment in infrastructure. The Woodside development would create a significant asset from which to provide more services in the future. Mrs Juroszek stressed the need to plan ahead and use intelligence about what services would be required for the future.

Following consideration of the papers:

1. The Board approved the Woodside Outline Business Case and Forres Outline Business Case Addendum.

2. The Board requested that the Woodside Outline Business Case and Forres Outline Business Case Addendum be forwarded to the Scottish Government Health Directorate Capital Investment Group with a recommendation for approval

3 Standing Orders Amendment Mrs Gray, Board Secretary, advised that the proposed amendment to the Standing Orders set out a clear process for the reception of deputations at Board meetings at Section 16. A number of minor changes had also been made to correct grammar and typographical errors.

The Board approved the revised Standing Orders.

4 Dates of Next Meetings

Tuesday 4 December (Meeting), Committee Room 5, Woodhill House Tuesday 15 January 2013 (Seminar), Seminar Room, Curl Aberdeen

Signed ………………………………………. Date ………………………………… Chairman