RESPONSE provided by Secretary, Department of Human Services

The Department of Human Services (DHS) considers the VAGO audit report entitled 'The new Royal Children's Hospital-a public private partnership' provides a fair representation of the development, procurement and delivery of the new Royal Children's Hospital Project.

DHS makes the following comments in relation to the recommendations in the report:

Recommendation 4.1:

DHS accepts this recommendation but notes that whilst consideration of models of care is important in service planning and they have an impact on development of hospital infrastructure, they need to be flexible to change over time in response to changes in clinical practice and workforce. One of the strengths of the new RCH design is its embedded ability to maintain flexibility so that the service can respond to clinical and organisational changes over time. The long planning time lines for major hospital investments (RCH was approximately 5 years) means that models of care developed at the beginning of the process are likely to evolve during that timeframe. As noted by VAGO in section 3 of the audit report, flexibility was identified as a key requirement in the RCH functional brief.

Recommendation 4.2:

DHS notes this recommendation but believes that it currently has, and had at the time the RCH service plan was being developed, an adequate understanding of its forecasting model. The forecasting model is just one tool that is used in estimating the future requirements for services. There are other factors that are taken into account in determining the numbers for a service plan, including an understanding of current and potential future roles of relevant providers across the statewide service system and other factors affecting future changes in need and in services to be provided.

Recommendation 4.3:

DHS accepts this recommendation. DHS has now developed a 'network response' framework in the form of the Strategic Framework for Paediatric Health Services in Victoria, which was published in January 2009 and provided to every Victorian health service and a number of consumer interest groups. Public consultations on the Framework have now taken place at two public stakeholder forums held on 6 and 20 February 2009. The Paediatric Clinical Network will commence during 2009.

Recommendation 4.4:

Agreed

Recommendation 6.1:

Agreed

Recommendation 6.2:

DHS notes that VAGO has concluded that the state has appropriate governance structures in place and is adequately managing its involvement in the design and construction phase of the Project. DHS acknowledges the need to address elements of its contract administration manual and will take the necessary steps to complete the manual expeditiously.