Commissioning

01.11.18

NHS trust struggling to find replacement to build post-Carillion Birmingham hospital

The NHS trust responsible for building the new Birmingham hospital has admitted it is struggling to find a replacement after Carillion’s collapse cast doubt over the £350m construction.

The Sandwell and West Birmingham Hospitals NHS Trust said there was still a risk of the trust being unable to find a firm prepared to take over the site of the Midland Metropolitan Hospital, although it is still hoping to finish the scheme in Smethwick by 2022.

In its board papers published ahead of its latest meeting, the trust said there was a possibility “the procurement process for the replacement financier and contractor does not result in a compliant bid in 2019 because of insufficient market availability resulting in Midland Met delivery delay beyond 2022.”

On its monthly risk register, the trust gave a risk score of 12 out of 25, an amber warning, which represents a significant risk, but has fallen since its last report which gave a rating of 20.

In the papers, the trust said the final costs on the project would not be known until the project reached its commercial close in 2019, but the trust’s CEO Toby Lewis claimed that costs of the delays alone would reach an eight-figure sum.

The trust’s Estates Major Projects Authority Committee also mentioned “market appetite for final contract bidding in the event of approval delay or prolongation” as another potential problem.

Carillion’s liquidation leaves the hospital two-thirds built, with estimates saying it will cost an extra £125m on top of the original £350m bill, and Lewis warned that the final costs could soar if the building wasn’t weather proofed by winter.

The Midlands Metropolitan Hospital will hold 15 operating theatres and at least 669 beds, along with state-of-the-art diagnostic equipment, maternity care and specialised surgery for around 750,000 residents.

In August, the government agreed to fund the remainder of the construction work after working closely with the NHS trust since Carillion went into liquidation and the work under a PFI agreement was halted.

PFI contracts have now been scrapped as part of the chancellor Phillip Hammond’s Budget commitments.

 

Enjoying NHE? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Comments

There are no comments. Why not be the first?

Add your comment

national health executive tv

more videos >

latest healthcare news

NHS England commits £30m to join up HR and staff rostering systems

09/09/2020NHS England commits £30m to join up HR and staff rostering systems

As NHS England looks to support new ways of working, it has launched a £30m contract tender for HR and staff rostering systems, seeking sup... more >
Gender equality in NHS leadership requires further progress

09/09/2020Gender equality in NHS leadership requires further progress

New research carried out by the University of Exeter, on behalf of NHS Confederation, has shown that more progress is still needed to achieve gen... more >
NHS Trust set for big savings in shift to digital patient letters

09/09/2020NHS Trust set for big savings in shift to digital patient letters

Up and down the country, NHS trusts are finding new and innovative ways to leverage the power of digital technologies. In Bradford, paper appoint... more >

editor's comment

26/06/2020Adapting and Innovating

Matt Roberts, National Health Executive Editorial Lead. NHE May/June 2020 Edition We’ve been through so much as a health sector and a society in recent months with coronavirus and nothing can take away from the loss and difficulties that we’ve faced but it vital we also don’t disregard the amazing efforts we’v... read more >

last word

Haseeb Ahmad: ‘We all have a role to play in getting innovations quicker’

Haseeb Ahmad: ‘We all have a role to play in getting innovations quicker’

Haseeb Ahmad, president of the Association of the British Pharmaceutical Industry (ABPI), sits down with National Health Executive as part of our Last Word Q&A series. Would you talk us th... more > more last word articles >

the scalpel's daily blog

Covid-19 can signal a new deal with the public on health

28/08/2020Covid-19 can signal a new deal with the public on health

Danny Mortimer, Chief Executive, NHS Employers & Deputy Chief Executive, NHS Confederation The common enemy of coronavirus united the public side by side with the NHS in a way that many had not seen in their lifetimes and for others evoked war-time memories. It was an image of defiance personified by the unforgettable N... more >
read more blog posts from 'the scalpel' >

comment

NHS England dementia director prescribes rugby for mental health and dementia patients

23/09/2019NHS England dementia director prescribes rugby for mental health and dementia patients

Reason to celebrate as NHS says watching rugby can be good for your mental health and wellbeing. As the best rugby players in the world repr... more >
Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Being on the receiving end of some “thanks” can make communit... more >
Nurses named as least-appreciated public sector workers

13/06/2019Nurses named as least-appreciated public sector workers

Nurses have been named as the most under-appreciated public sector professionals as new research reveals how shockingly under-vauled our NHS, edu... more >
Creating the Cardigan integrated care centre

10/06/2019Creating the Cardigan integrated care centre

Peter Skitt, county director and commissioner for Ceredigion Hywel Dda University Health Board, looks ahead to the new integrated care centre bei... more >

interviews

Matt Hancock says GP recruitment is on the rise to support ‘bedrock of the NHS’

24/10/2019Matt Hancock says GP recruitment is on the rise to support ‘bedrock of the NHS’

Today, speaking at the Royal College of General Practitioners (RCGP) annual conference, Matt Hancock highlighted what he believes to be the three... more >
NHS dreams come true for Teesside domestic

17/09/2019NHS dreams come true for Teesside domestic

Over 20 years ago, a Teesside hospital cleaner put down her mop and took steps towards her midwifery dreams. Lisa Payne has been delivering ... more >
How can winter pressures be dealt with? Introduce a National Social Care Service, RCP president suggests

24/10/2018How can winter pressures be dealt with? Introduce a National Social Care Service, RCP president suggests

A dedicated national social care service could be a potential solution to surging demand burdening acute health providers over the winter months,... more >
RCP president on new Liverpool college building: ‘This will be a hub for clinicians in the north’

24/10/2018RCP president on new Liverpool college building: ‘This will be a hub for clinicians in the north’

The president of the Royal College of Physicians (RCP) has told NHE that the college’s new headquarters based in Liverpool will become a hu... more >

health service focus

View all News