Friday, July 3, 2015

New Royal Adelaide Hospital: Australia’s Largest Health PPP

HILLION Pierre, WEE Jean
©2015 INSEAD Case Study
Also available: Teaching Note
Get the case from INSEAD Case Publishing

The case discusses the public-private partnership to build the New Royal Adelaide Hospital (NRAH) (replacing the outdated Royal Adelaide Hospital) at a cost of A$1.7 billion in 2009. The 35-year concession was eventually awarded to a consortium, the South Australian Health Partnership (SAHP), and the government agreed to make an annual service payment to the consortium of A$397 million a year once the hospital was completed in 2016. Rising state debt in the wake of the global financial crisis led to protests by opposition politicians when the cost of the NRAH was said to have ballooned.