Delay pushed hospital bill up by €23m

THE construction cost of putting Cork’s super maternity hospital on a single site jumped by 76% to €53.6 million because it took the Government too long to reach a decision to build it.

An internal Health Service Executive audit examined the project and criticised the delays, which saw the bill increase from €30.3m to €53.6m in six years. This bill was the backbone of an eventual €79.7m project price.

The Central Expenditure Evaluation Unit’s (CEEU) spot check report on the scheme to amalgamate multiple maternity units at Cork University Hospital said the plan took shape before more stringent rules for costing projects came into force.

However, the CEEU said there was an inadequate assessment of options and risks which subsequently inflated the cost. In particular, it said proper advance analysis could have predicted the effect the closure of the Bon Secours maternity unit would have on the initial concept to bring St Finbarr’s and the Erinville maternity units to the regional campus at Wilton. This added 38 beds and 16 neonatal cots to the physical design.

“Projects should be appraised, planned and implemented within a reasonable timeframe. In particular, the origins of this project appear to date back to 1969,” it said.

The auditors said between 1995, when plans began in earnest, and when the hospital opened in 2007, costs spiralled significantly.

“It was March 2007 before the AMU (amalgamated maternity unit) opened.

“The projected total capital cost is now (approximately €53.6m) compared to €47.4m in January 2002.

“A significant factor in the current final cost projection is the construction sector inflation over the period in question. Speedier progression of projects would reduce such inflationary cost escalations,” it said.

The report said it cost €7m to design, €53.6m to build and €13m to equip.

The final totals were blacked out of the CEEU audit report, which was released under the Freedom of Information Act. However, the HSE has confirmed the eventual cost was €79.7m, €2.7m more than the €77m previously suggested.

The auditors constructed a timeline for the project, dating back to October 1995 when the old Southern Health Board presented a plan to local politicians.

This was fleshed out between the board and the departments of Health and Finance over the next 25 months. In November 1998 the overall cost was put at IR£32.m (€41m), based on a detailed design brief, compared to the €79.7m final bill.

In November 2001 the capital cost for the scheme was set at €30.3m and this included the Bon Secours.

The capital estimate shot up to €44.9m when plans were tweaked in January 2002. More inflation in construction meant the tender came in at €51.2m. It had eventually cost €53.6m by the time the hospital opened in March 2007.