Project: Hancock Geriatric Treatment Center at Eastern State Hospital

Location: Williamsburg, Virginia

Public Partner: Virginia Department of Mental Health, Mental Retardation & Substance Abuse Services (DMHMRSAS)

Private Partner: Gilbane Development Company

Privatization Structure: Design-Build PPP

Financing: Total cost of the new, state-of- the-art Hancock was $28 million. The improved staffing and operational efficiencies are anticipated to generate cost savings that will pay for the new facility within 15 years. Gilbane was responsible for all predevelopment expenses, as well as selected development expenses. The company received monthly payments from DMHMRSAS from the schematic design onward. Under this financing plan, several financing constraints were removed from the project and helped lead to an expedited delivery

Measures of Success: DMHMRSAS received the completed facility in 26 months. Gilbane delivered the facility in approximately one-third the time the project would have taken under traditional procurement and final cost of the project was less than it would have been under traditional procurement by eliminating construction escalation costs. Through the use of a PPP, DMHMRSAS was able to retain Hancock's Medicare and Medicaid compliant status, improve patient care and make serving patients more efficient.