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Public funds boost for hospital Public funds boost for hospital
(about 2 hours later)
The most expensive hospital to be built in Scotland will be funded by the Scottish Government.The most expensive hospital to be built in Scotland will be funded by the Scottish Government.
Public Health Minister Shona Robison said that £842m would be spent "completely redeveloping" the Southern General Hospital in Glasgow.Public Health Minister Shona Robison said that £842m would be spent "completely redeveloping" the Southern General Hospital in Glasgow.
The New South Glasgow Hospital will incorporate a children's hospital.The New South Glasgow Hospital will incorporate a children's hospital.
NHS Greater Glasgow and Clyde will fund about a third of the cost of the project, but the bulk, £552m, will be provided by the Scottish Government.NHS Greater Glasgow and Clyde will fund about a third of the cost of the project, but the bulk, £552m, will be provided by the Scottish Government.
Ms Robison announced the funding details on Tuesday morning.Ms Robison announced the funding details on Tuesday morning.
She said: "In considering the options for funding this project, the Scottish Government has sought to ensure that the project is deliverable, affordable, sustainable and represents best value for money for the taxpayer.She said: "In considering the options for funding this project, the Scottish Government has sought to ensure that the project is deliverable, affordable, sustainable and represents best value for money for the taxpayer.
"With services for all ages - from maternity to paediatric and adult - on a single site, patients will be able to get immediate access to a wider range of specialist services for adults, children and babies alike."With services for all ages - from maternity to paediatric and adult - on a single site, patients will be able to get immediate access to a wider range of specialist services for adults, children and babies alike.
"Single rooms for all patients will not just provide patients with greater privacy but will also be a major step forward in infection control."
NUMBER CRUNCHING The new hospital will provide 1,109 beds for adultsA 240-bed children's hospital will also be built on siteAbout 630 beds will be retained on the existing Southern General Hospital siteA new laboratory will provide haematology, blood transfusion and mortuary servicesNUMBER CRUNCHING The new hospital will provide 1,109 beds for adultsA 240-bed children's hospital will also be built on siteAbout 630 beds will be retained on the existing Southern General Hospital siteA new laboratory will provide haematology, blood transfusion and mortuary services
"Single rooms for all patients will not just provide patients with greater privacy but will also be a major step forward in infection control."
NHS Greater Glasgow and Clyde recommended public funding over private in its case to the Scottish Government.NHS Greater Glasgow and Clyde recommended public funding over private in its case to the Scottish Government.
The SNP administration has in the past criticised the use of Private Finance Initiatives (PFI) to fund public sector building projects, a policy followed by the previous Labour-Lib Dem coalition.The SNP administration has in the past criticised the use of Private Finance Initiatives (PFI) to fund public sector building projects, a policy followed by the previous Labour-Lib Dem coalition.
Under PFI, and its "public private partnership" (PPP) successor, a private sector consortium designs, builds and finances a health institution.Under PFI, and its "public private partnership" (PPP) successor, a private sector consortium designs, builds and finances a health institution.
It is then rented back to the health board, which is charged for the running costs.It is then rented back to the health board, which is charged for the running costs.
Alex Salmond had promised to introduce not-for-profit trusts as an alternative to PFI, but the SNP's manifesto made it clear that councils and other public bodies would be able to choose how to fund building projects - leaving private finance open as an option.Alex Salmond had promised to introduce not-for-profit trusts as an alternative to PFI, but the SNP's manifesto made it clear that councils and other public bodies would be able to choose how to fund building projects - leaving private finance open as an option.
The health board's chairman, Andrew Robertson, said the Scottish Government's approval of the project was "truly historic" for the NHS in Scotland.The health board's chairman, Andrew Robertson, said the Scottish Government's approval of the project was "truly historic" for the NHS in Scotland.
"Our proposals for the new campus represent the largest investment in health services ever undertaken in Scotland," he added.
Shona Robison announced the funding detailsShona Robison announced the funding details
"Our proposals for the new campus represent the largest investment in health services ever undertaken in Scotland," he added.
"It will see Glasgow become home to the largest, most advanced single NHS development in Scotland."It will see Glasgow become home to the largest, most advanced single NHS development in Scotland.
"Investment in the new hospitals and maternity unit, together with the new laboratory facility will transform the experience of healthcare for patients and staff alike.""Investment in the new hospitals and maternity unit, together with the new laboratory facility will transform the experience of healthcare for patients and staff alike."
He also claimed the building programme would "breathe new life into Govan and the wider area".He also claimed the building programme would "breathe new life into Govan and the wider area".
"Without doubt the biggest single factor in the regeneration of the area is this development boosting wealth, business opportunities, local jobs plus transport and environmental improvements," he said."Without doubt the biggest single factor in the regeneration of the area is this development boosting wealth, business opportunities, local jobs plus transport and environmental improvements," he said.
Donald Sime, the health board's employee director, said the fact that the hospital would be publicly funded was "terrific news for both patients and NHS staff".Donald Sime, the health board's employee director, said the fact that the hospital would be publicly funded was "terrific news for both patients and NHS staff".
'Clear endorsement'
"The joint trades unions are delighted that the Scottish Government has agreed to fund this major hospital build by public procurement," he said."The joint trades unions are delighted that the Scottish Government has agreed to fund this major hospital build by public procurement," he said.
"Other funding routes could have meant NHS staff tendering for the opportunity to provide services such as catering, cleaning and other support services."Other funding routes could have meant NHS staff tendering for the opportunity to provide services such as catering, cleaning and other support services.
"However, this confirmation of public funding now ensures that the new hospital campus will be run and managed by the full NHS team.""However, this confirmation of public funding now ensures that the new hospital campus will be run and managed by the full NHS team."
STUC general secretary Grahame Smith said the move was a "clear endorsement" of the view that PFI and "other models" of financing public sector projects were flawed.
"However whilst welcoming this announcement we hope, expect and will continue to campaign for this form of funding for public sector projects to become the norm," he added.
The Southern General development would signal the end of acute services at Glasgow's Western Infirmary and the Royal Hospital for Sick Children at Yorkhill.The Southern General development would signal the end of acute services at Glasgow's Western Infirmary and the Royal Hospital for Sick Children at Yorkhill.
In-patient acute services would also be transferred from the city's Victoria Infirmary.In-patient acute services would also be transferred from the city's Victoria Infirmary.
Glasgow City Council has already granted outline planning permission for the development.Glasgow City Council has already granted outline planning permission for the development.