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Executive set to buy HCI at Clydebank

20/06/2002

The Executive has today announced that it is in advanced negotiations to buy the HCI hospital in Clydebank for the use of NHS patients.

Health Minister Malcolm Chisholm confirmed to Parliament that a price of £37.5 million had been agreed with the owners of the hospital and that, subject to due diligence, the Executive expected to take possession of the hospital for the NHS shortly.

The Minister also set out plans to transform the HCI facility into a National Waiting Times Centre to work alongside local NHS Boards to cut unacceptable waiting times across the country.

This radical new initiative would, he said, be a good deal for patients, taxpayers, the Clydebank economy, and the NHS. It is expected that the new national centre will carry out some 5,000 procedures for patients with long waits in the first year of operation - double its present private sector capacity.

The Executive will also be looking at how to maximise the potential use of the 60,000 square metre facility - for example in easing NHS winter pressures and as a 'proving ground' for healthcare innovation.

Mr Chisholm said:

"Earlier this year we were approached by the Abu Dhabi Investment Company - the owners of the private HCI hospital. Despite the hospital's world-class facilities, the original intention for the hospital has not been commercially realised and its current owners do not wish to continue the business. Quite simply, without a change of ownership and direction the hospital would face closure.

"Clearly the loss of this facility would be a major blow to the local economy of Clydebank and surrounding areas. It would also put the jobs of many healthcare professionals in jeopardy. And, it could potentially remove a valuable source of additional capacity for the NHS.

"I can announce to Parliament today that we have entered into detailed negotiations to purchase the entire HCI hospital facility for the National Health Service in Scotland.

"This pragmatic decision has been taken to step up investment and reform, to support patient care, and to protect Scottish jobs. It is not an attack on the private sector. As we have consistently stated, the private sector has been, and will continue to be, a partner for the NHS in delivering patient care. Buying the hospital is about saving services for Scotland, and opening up new opportunities for the development of patient care in the NHS.

"We propose to transform the HCI facility into Scotland's National Waiting Times Centre. We plan to use its world-class facilities to help drive down waiting times. Not just for one part of the country - but for all parts of the country. Particularly targeting those waiting the longest for treatment.

"An early initiative will involve HCI working closely with cardiac centres across Scotland to ensure that cardiac surgery waiting times continue to show very significant reductions.

"The Centre will also focus its resources on red ucing maximum waiting times for hip and knee replacement, cataract surgery, general surgery, plastic surgery and diagnostics.

"As well as the additional activity in elective surgery, we will also use the diagnostic capacity available within the facility to complement local action plans to reduce waiting times - for example through the use of the extensive endoscopy and investigative facilities.

"Last year HCI carried out some 2,500 procedures for patients. It is our intention to double this figure to 5,000 within the first year of operation for the NHS.

"Working alongside and complementing existing NHS services, the Centre will help us to sustain Scotland's waiting times performance at the head of the UK league table. But, of course, acquiring such a high quality asset comes at a price.

"I can confirm today that, subject to the finalisation of some details, we will acquire the whole of this facility, including:

  • A fully functioning 52-bed acute elective facility
  • Six functioning operating theatres
  • MRI and CT scanning
  • an on-site hotel for patients and relatives
  • space for expansion

"Today I can confirm to Parliament that we have agreed a price of £37.5 million for the land, building and its equipment - subject to the completion of the necessary due diligence. The cost of building a 60,000 square metre hospital including equipment at today's prices would be four or five times as much.

"We have tested the financial case for this investment and it represents exceptional value for money for the NHS. In addition to the world-class facilities we will also be looking to retain the services of the highly skilled staff working within the HCI facility - including around 10 consultant doctors and over 100 nurses. I want to send a strong message to those staff today that we want them to join - and in many cases to rejoin - the NHS family.

"I want to take this opportunity to make absolutely clear that we see the proposed purchase of the HCI facility in a national - rather than a west of Scotland - context.

"The purchase of the HCI facility for the NHS will not be a factor in Greater Glasgow's review of acute health services for the city. And similarly, it will be for those running the NHS in Argyll and Clyde, in partnership with local people, to decide the best structure for the delivery of acute health services in their future local plans.

"On completion of a deal, it is our intention to create a Special Health Board meantime to ensure proper management and accountability for the facility. Interim management arrangements and a project management team will also be put in place as soon as a deal is completed to oversee the transformation from a private hospital to a national NHS resource.

"Our vision for the long-term development of the HCI facility does not end here. The purchase of the HCI facility gives us scope and potential for developments in a range of other areas in addition to reducing waiting times.

"For example, the spare capacity within the facility will be an invaluable additional safety net for the NHS in terms of planning and preparing for winter pressures. And, alongside a range of health organisations that already rent space within the facility, including our own NHS24's west of Scotland call centre, we will be exploring the scope for other health projects using the facility as a hi-tech 'proving ground' for new and innovative ways of working.

"But reducing maximum waiting times is the driving force for our national efforts and the new Centre at Clydebank will be in the vanguard of that effort. It will be an exemplar facility that the people of Scotland can be proud of.

"The facility will also require a new name - one in keeping with its new role as a truly national asset. We will be seeking the input of staff and the public on this over the coming weeks before a final name is chosen.

"This is a hugely important development for the NHS - and for patients in Scotland. I am convinced that it will be warmly welcomed - not just for the obvious economic benefits in Clydebank and the surrounding area - but right across the country and throughout this chamber

"This is a good deal for the NHS. A good deal for the taxpayer. A good deal for all the members of the healthcare team at HCI whose jobs were under threat.

"This is a deal that will help to keep us at the forefront of waiting times performance in the UK. Above all, it is a great deal for patients and for Scotland."

Page updated: Thursday, July 22, 2004