GLOSSARY

Addendum

the May 2005 update to the December 2004 OBC.

Affordability

the capacity of an organisation to afford the health campus. It is usually expressed as the maximum price that the organisation could pay.

Business Case

a document that supports a proposal for capital investment. It must convincingly demonstrate that a project is economically sound, financially viable and will be well managed.

Campus Partners

St Mary's NHS Trust, the Royal Brompton and Harefield NHS Trust and Imperial College of Science, Technology and Medicine and, from 1 July 2002, Partnerships UK.

Capital Investment Manual

provides detailed guidance to the NHS for each stage of a capital scheme including practical guidance on the technical considerations of the full capital appraisal process and a framework for establishing management arrangements to enable benefits to be identified, evaluated and realised.

Clinical Reference Group

responsible for developing clinical models based on affordable models of care for the Campus.

Commissioners

NHS organisations, usually Primary Care Trusts, which receive direct funding from the Department of Health to purchase healthcare for patients. May also include national commissioners of specialist services.

Enabling and decanting

works that would facilitate the move of the three hospitals to the campus and allow St Mary's hospital to remain operational during building works.

Full Business Case

the third phase (following the Strategic Outline Case and Outline Business Case) of the business case, which assesses and plans the preferred option in detail.

Gateway Report

a review by the Office of Government Commerce to establish a scheme's fitness to proceed in the procurement cycle.

Independent Review Panel 2005

commissioned by the North West London Strategic Health Authority to produce a report on the 'Lessons Learned from the Paddington Health Campus Project' (published 10 October 2005).

Joint Project Board (JPB)

established in May 2002 to oversee the Paddington Health Campus scheme. The Board was co-chaired on a rotating basis by Non-Executive Directors of St Mary's and the Royal Brompton and Harefield NHS Trusts.

Joint Review

collaboration between the Department of Health, HM Treasury and the National Audit Office in 2004 to consider why the scheme's estimated capital costs had risen so much since the 2000 OBC and how this situation had come about.

London Regional Office

responsible for overseeing London's health services, covering a population of 7 million and overseeing 16 Health Authorities (as at 1999). Abolished in 2002.

Memorandum of Understanding

a document which set out the agreement that had been reached between the Campus Partners in relation to how the procurement of the Paddington Health Campus was to be governed.

MIPS

Median Index of Public Sector construction costs.

National Heart and Lung Institute

a division of Imperial College, Faculty of Medicine. The Institute is based at the Royal Brompton and Harefield Hospitals.

NHS Trust

a providing body for health care, created under 1990 legislation in a move to distinguish between the providing function and the commissioning function (undertaken by Health Authorities).

North West London Strategic Health Authority

from April 2002, one of England's 28 Strategic Health Authorities, responsible for the performance management of St Mary's NHS Trust and the Royal Brompton and Harefield NHS Trust.

Off balance sheet

a form of borrowing in which the obligation is not recorded on the borrower's financial statements and does not attract capital charges.

Official Journal of the European Union (OJEU)

the journal through which a PFI scheme must tender for contractors. Formerly 'Official Journal of the European Communities' (OJEC).

On balance sheet

a form of borrowing in which the obligation is recorded on the borrower's financial statements and does attract capital charges.

Optimism bias

an explicit adjustment, based on data from previous projects, to redress the tendency to be overly optimistic when assessing the cost, work duration and benefits of projects.

Outline Business Case (OBC)

the second phase (following Strategic Outline) of the business case cycle, which identifies the preferred option.

Outline Planning Permission

establishes the principle of development. The details of the development may be reserved and will require a further planning application.

Overage

a clawback mechanism to allow the seller of land to receive a defined proportion of sales proceeds if that land is re-sold by the initial purchaser.

Paddington Basin

the offshoot of the Grand Union Canal, which lies to the north of the current St Mary's Hospital.

Paddington Basin Project Board

oversaw the development of the Campus scheme on behalf of the West London Partnership Forum until it was disbanded during the April 2002 reorganisation of the NHS.

Paddington Development Corporation Limited (PDCL)

owners of land adjacent to the St Mary's hospital site north of the Paddington Basin.

Paddington Health Campus

the project by which the Campus Partners sought to build a health complex on the Paddington Basin site.

Patient choice (at the point of referral)

the policy, effective from January 2006, whereby patients are able to choose a convenient place, date and time for their initial hospital appointment from at least four providers.

Payment by Results (PbR)

the NHS financial framework for rewarding activity in hospitals with a tariff-based payment.

Principals' Group

established in August 2004 to enable the Campus partners to negotiate effectively in a time-critical manner with Paddington Development Corporation Limited.

Project Executive Group

established in March 2004 to take day-to-day decisions relating to the scheme in conjunction with the Project Director. Reported to the Joint Project Board.

Private Finance Initiative (PFI)

a policy introduced by the Government in 1992 to harness private sector management and expertise in the delivery of public services, while reducing the impact of public borrowing.

Public Sector Comparator (PSC)

a method used to calculate the "in-house" cost of delivering a project, which helps determine whether the Private Finance Initiative route is a viable alternative and demonstrates good value for money.

Risk

the probability of an event occurring, coupled with the anticipated impact on individuals and/or organisations.

Risk assessment

the process that helps organisations understand the range of risks they face - both internally and externally, the level of ability to control these risks, their likelihood of recurrence and their potential impacts. It involves a mixture of quantifying risks and using judgement, assessing and balancing of risks and their benefit and weighing them, for example, against cost.

Risk register

a database where results of all an organisation's risk assessments are recorded.

Strategic Outline Case

the first phase (preceding Outline Business and Full Business) of the business case cycle, which makes the case for change.

Turnberg Report 1998

a review of London's healthcare provision, chaired by Sir Leslie Turnberg, which set the context for the wider London healthcare strategy.

West London Partnership Forum

formed in March 1999 to unite the local healthcare organisations in west London (now north west London) and Imperial College to take forward the recommendations of the Turnberg Report 1998. Dissolved in March 2002.

Westminster City Council (WCC)

local authority, which owned the North Westminster Community School Site and was the provider of planning permission for the Campus scheme.