3.2.3  Development of a business case

After the investment evaluation report was presented to government, a business case based on a Partnerships Victoria procurement model was requested. The business case was approved by the State Government in September 2003.

The business case evolved from work contained in the feasibility study and the investment evaluation report and contained evidence of:

•  defined need-as previously discussed for the feasibility study and the investment evaluation

•  consideration of future growth requirements and needs-the needs of the hospital were based on the approved service profile

•  economic benefit-some of the key benefits cited in the business case were:

•  provision of improved patient care and comfort, as well as a better working environment for staff via a modern, state-of-the-art facility

•  integration of services resulting in an increase in the quality of service delivery and the opportunity for significant recurrent cost savings

•  realisation of site value by leveraging the value of the Melbourne Health precinct and allow the state to release capital from RWH non-core assets

•  mitigation of the significant cost and occupational health and safety risks associated with the existing RWH facility

•  access to new equipment to improve the level of healthcare services and minimise operating costs

•  environmental issues as the demolition of the Charles Connibere Building and excavation for the new car park would remove any asbestos and ground contamination risks

•  efficient energy usage by the requirement to meet Ecologically Sustainable Development guidelines.

The business case was a comprehensive document that incorporated the necessary information required by the Partnerships Victoria guidelines.

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