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The construction story for 2009

Valerie Ryan reports on major developments in the Irish private healthcare sector

The sight of builders’ cranes on the future. The clinical argument is for Irish skyline has become the norm in improved infection control while the recent years, but in 2009 they will - other side of the coin is for improved in effect – act as signposts for the patient comfort and privacy. The country’s newest and existing private existing hospitals also say they are Thospitals, as major plans for con- responding to changes in technology struction projects get underway. introducing the new modalities as Investment in the private medicine they come on stream, to different sector is the healthcare and construc- clinical practice and the ever-growing tion story for the year ahead. Fuelled use of day care therapies. in part by the tax-based investment In , hospitals such as the scheme, the sector has seen an influx , the Mater Private of money never dreamt of, or imag- Hospital, St. Vincent’s Private ined, 20 years ago. Hospital and Mount Carmel Hospital In the ‘80s, it is fair to say private are being significantly re-developed. hospitals like Dublin’s Blackrock The Bons Secours Health System has Clinic led the way in terms of design completed a major development in and comfort for a hospital setting. In Dublin, but this is only part of a €250 a sector more accustomed to the million re-development programme healthcare sector took a significantly healthy antiseptic corridors of the for its all its hospitals in Galway and new direction when the Government older public hospitals, laid out in Cork, Tralee and Dublin. In addition. told the HSE, under section 10 of the lengthy wards, the design at the a major development is going ahead Health Act 2004, to implement the Blackrock Clinic was a talking point. at the opened in 2004. Co-located Private Hospitals Project. In Dublin, the Mater and St. The new privately-operated co- Vincent’s private hospitals or the located hospitals will allow for 24/7 Bons Secours in Cork were the other admission from the public hospitals, main operators offering modern com- the public A & E, primary care cen- fortable physical facilities, which The plan is that tres and through GP referrals. The were not matched in the public sec- they will have the plan is that they will have the capaci- tor. capacity to treat all ty to treat all private patients current- private patients ly catered for in public hospitals. Countrywide currently catered for Under project agreements for the In marked contrast today, the country eight new private hospitals on pub- is seeing the rise of major new facili- in public hospitals lic hospital sites, the land on which ties almost countrywide - some up ‘‘ the hospitals will be built will be and running - others are at planning under a 65-year lease from the or initial stages. But that is only one Co-located State. Health Minister, Mary Harney side of the story, the existing private Apart from the private stand-alone says this means that the State will hospitals are about to, or already are, developments, there are eight “co- receive an income for land over the investing significantly in re-building located” hospitals due to be built in 65-year period. or re-developing their facilities. the grounds of public hospitals. And, according to the reply to par- And the major features for new These hospitals are to provide 1,000 liamentary questions from Fine Gael’s developments? Single rooms have beds which will be taken’ out’ of the Deputy Dr. James Reilly, to the become a distinct feature for the public system. Three years ago, the Minister for Health in July this year,

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private | healthcare

the consortia involved in the provi- Service Level Agreement (SLA) in around €160 million and they hope to sion of the co-located hospitals - and place for the private hospital to take have it finalised by June 2010. the estimated number of beds per pri- in public patients. The Bons Secours Health System is vate hospital – will be: awaiting the decision by An Bord 1. Waterford Regional Hospital - Upgrading Pleanála for its proposals for a devel- Waterford Co-location Consortium Currently, Dublin’s Mater Private opment of its Cork hospital. - 132 beds Hospital is considering an investment Currently, the country’s largest pri- 2. - Beacon of up to €30 million in new develop- vate healthcare provider, the compa- Medical Group -150 beds ments but in existing established spe- ny has sought planning for a five- 3. Limerick Regional Hospital - cialties, such as day care cancer thera- storey extension to the Bons Secours Beacon Medical Group - 160 beds py and clinical oncology. They are also Hospital in Cork which will allow for 4. Sligo General Hospital - Mount working through a €23 million two year an expansion of services such as can- Carmel Medical (subject to board capital programme to boost operating cer and cardiology. Investment in approval) - 100 beds capacity by 40 per cent; a new ward Tralee is also planned and the group 5. Beaumont Hospital - Beacon bringing bed numbers to 218; a new expects to spend about €150 million Medical Group - 170 beds breast centre and increase in radio- over the next three to four years on 6. Connolly Hospital - Mount Carmel therapy capacity by 25 per cent. the two hospitals. Medical Group - 75 7. St James’ Hospital - Synchrony Galway Clinic Health Care -170 beds In only its fifth year of operation, the 8. AMNCH Tallaght - Beacon There will be a joint €100 million Galway’s Clinic is Medical Group and Synchrony are embarking on a major expansion bidders - 150 beds. governance structure plan, according to Galway Clinic The latest statement from the HSE to manage shared CEO, Mr James Sheehan. says the procurement process is issues between the Mr Sheehan, an orthopaedic sur- pending in all the hospitals, except existing public and geon and a founder of the Galway for Beaumont, Cork and Limerick new private facilities Clinic and the Blackrock Clinic in and these tenders have been won by Dublin, believes in the principle not the Beacon Medical Group. The ‘‘ to set up a hospital to make money - group is to invest €297 million in as there is no return on investment the new private hospital at Dublin’s Another of the established private for up to 10 years. It is provided as a Beaumont Hospital. Michael Cullen, hospitals, St. Vincent’s Private service to the community. BMG CEO said this much needed Hospital, part of the St. Vincent’s He also favours a “community type state-of-the-art facility will also Healthcare Group, is to replace the hospital” which stands alone, as dis- bring much needed capital invest- existing 164 bed hospital by a new tinct from the co-located model. The ment into the area of North County 260 bed hospital. Opened 34 years models he has developed are differ- Dublin and associated job creation. ago, they were faced with’ either’ ent, as he says profits are being They believe that “the government’s upgrading the existing hospital or ploughed back and reinvested in the co-location policy is the most effi- starting from a greenfield build. The facilities. And sourcing the money for cient and cost effective way of expe- benefit of developing for them has to the development is possible based on ditiously adding both public and pri- do with replacing the old hospital with their track record. vate patient capacity to our country’s a purpose built modern facility, which Back in Dublin, the Blackrock Clinic under-resourced infrastructure”. has its own inherent benefits, rather is undertaking a five year €100 million There will be a joint governance than adding on to the existing build- expansion programme. While the structure to manage shared issues ing. They believe they will benefit by Blackrock Clinic is making profit, he between the existing public and new meeting modern building standards says they are re investing in the hospi- private facilities. As part of the part- from an economic and environmental tal. It is worth noting that the interest nership approach between the public point of view. They plan to increase rate - when they set up in 1984 - was at and co-located hospitals, where the theatre capacity and accommodation 23 per cent, which meant it was many public hospital is full and the private with a modern purpose built facility. years before investors received any facility has capacity, there will be a The cost of the new build will be return on their money.

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