Future Fit: Cost of original plans soar to £498 MILLION, leaked report reveals
The cost of delivering the original plans for Shropshire's Future Fit hospitals shake-up has now soared by almost 60 per cent to £498 million – £186m more than first anticipated, a leaked document has revealed.
The scheme, which will place the county's main emergency centre in Shrewsbury and make Telford's Princess Royal Hospital the site for planned care, was costed at £312m.
But a leaked document has revealed that inflation and other adjustments have caused this figure to rise significantly.
The strategic outline case for Future Fit, marked private and confidential, says that "in order to deliver the scope of the original pre-consultation business case, the sum required amounts to £498m".
It says: "This is an increase of £186m when compared with the sum of £312m outlined in the original pre-consultation business case in 2016."
The rise is an increase of 59.6 per cent on the original budget.
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The leaked report adds: "The difference in required capital is due to inflation (£134m), increased awareness and knowledge (£24m) and on-balance sheet adjustments (£28m).
"A phased development approach has also been included for consideration as agreed with NHS England/Improvement.
"This approach sets out summary of potential development over six key phases.
"Further work is required to develop this approach further and confirm exact costings."
Health commissioners previously said they expected the capital costs to remain at £312m, adding that whatever is provided has to be in line with the model consulted on.
Downgrade
A public consultation was carried out last year but the decision then made was challenged by Telford & Wrekin Council, which asked Health Secretary Matt Hancock for a review.
In October, Mr Hancock allowed the plans to go ahead, but asked for proposals to be developed for an 'A&E Local' at PRH, which is expected to be a downgrade from full A&E services.
The Shrewsbury and Telford Hospital NHS Trust, which runs PRH and Royal Shrewsbury Hospital, has declined to comment on the details revealed in the leaked document.
The report states that the hospital reconfiguration proposes a three or four-storey new build at RSH which will house an 'emergency village', critical care, women's and children's services and inpatient wards.
In the 'emergency village' would be the emergency department, ambulatory emergency care, clinical decisions unit and urgent care facility.
There are also plans to refurbish the outpatients department, theatres and existing inpatient wards at RSH.
At PRH, theatres and wards would be refurbished, along with the existing A&E to accommodate an urgent care facility.
The document also says the trust's medium-term financial plan has been recast to reflect the period from 2020-25, recognising the increased capital cost of the development.
The Future Fit scheme has also been threatened with a legal challenge after Telford MP Lucy Allan set up a crowdfunding campaign.
