In October 2004, a strategic business case (SBC) for the new RCH was endorsed by DHS, the RCH steering committee and the RCH board.
The SBC included an assessment of service needs, the need for a redeveloped hospital and high level exploration of several options to achieve the objectives of the RCH redevelopment project.
The SBC re-iterated the need for RCH to respond more effectively to changing patterns of demand and the changing needs of patients and their families. It concluded that this could only be achieved with new models of care and key facility changes.
In terms of options, the SBC presented six potential high level solutions or redevelopment options, including a base case or 'do-nothing' option for the RCH. Preliminary redevelopment costs for each of the options were included in the SBC.
Key points raised in the preliminary analysis of options and associated costs included:
• The 'do nothing' option should not proceed as it was considered to be inconsistent with government policy for children's health services and because the existing RCH infrastructure would require ongoing upgrades to retain functionality and safety. New models of care could be developed to a limited extent only and access problems, particularly car parking would remain unaddressed.
• The 'non-asset' solution was discarded because it was considered that clinical services provided by RCH were required to service the paediatric patient population with no alternative public or private provider available with the capacity to provide these services. The location of acute services elsewhere would require new infrastructure at comparable or greater cost.
• The remaining five options identified would be carried forward into master planning and feasibility stages.
• The business case for the RCH should further evaluate the Partnerships Victoria approach as one of the procurement options for the project.