Frequently Asked Questions

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Frequently Asked Questions - May 2009 [PDF 115KB]

What is happening with the New Royal Hobart Hospital project?

The Tasmanian Government remains committed to a new Royal Hobart Hospital but has decided to defer construction until economic conditions improve due to the impact of the global financial crisis on the State Budget.

Tasmania cannot afford the investment of between $1.5 and $2 billion required for a new hospital in the current economic climate and as a result the State Government has ruled out a new hospital on the Railyards site.

Planning will continue on a new approach, with a new Royal to be redeveloped on the current site over an extended period, and possibly supplemented by a new building on a nearby site to provide additional space.

To ensure the Royal can be maintained properly until economic conditions improve, $100 million will be spent over the next five years on high priority works which will deliver major service improvements and ensure the Royal remains safe and reliable until a new hospital is built.

Will Tasmania ever get a new Royal Hobart Hospital?

Yes. A new Royal Hobart Hospital is one of the State Government’s top priorities and as soon as conditions allow, the current site will be redeveloped over an extended period with the possibility of the construction of a new building nearby to provide decanting space.

Redevelopment options will take about 20 years to complete.

Planning will continue so the State Government can move into action as soon as funding becomes available.

What did the New Royal Hobart Hospital Business Case show?

The Business Case looked at building a new hospital on the Railyards site as well as redeveloping the current site.

The Business Case found that a new hospital on a new site would provide the best quality outcome in the shortest time frame for the lowest capital cost.

The Railyards option could have been completed by 2015-16 and was estimated to cost $1.5 billion plus site clean-up costs and relocation costs in the order of $100 million.

Redevelopment options on the current site could be completed by between 2018 and 2022 and were estimated to cost between $1.8 and $2.1 billion.

However, both the Railyards option and immediate redevelopment on the current site have now been overtaken by the impact of the global financial crisis.

So while the Business Case recommends building a new hospital on the Railyards site, the State Government can no longer afford the massive upfront investment and is examining alternative models to deliver a new hospital on the current site over a longer period of time.

Why are you redeveloping on the current site?

The decision to rebuild on the current site took into consideration:

  • the massive upfront investment required to build a new hospital on a new site;
  • the negative impact of moving the hospital on businesses in the immediate CBD; as well as
  • the community’s concern about the impact on the waterfront.

As a result, redeveloping on the current site, possibly supplemented by a new building on a nearby site, is the only viable option.

How will the existing Royal cope until a new Royal is ready?

The State Government will spend $100 million on high priority works at the Royal Hobart Hospital which will deliver major service improvements and ensure the Royal remains safe and reliable until a new hospital is built.

The $100 million will address the hospital’s ageing buildings and infrastructure and improve and expand key services such as intensive care.

The $100 million will fund:

  • Upgrade and expansion of the Intensive Care Unit and High Dependency Unit to help improve surgical throughput in the main theatres, especially in the areas of brain and heart surgery.
  • Create a combined clinic area where out-patient functions can be consolidated in one location to improve efficiency and free up space in other parts of the hospital.
  • Relocate and expand the Ambulatory Care Unit and Cancer Unit.
  • Expand the recovery area in the Day Procedures Unit, including a 23 hour recovery unit to give clinical staff more flexibility in scheduling elective surgery.
  • Upgrade general wards to optimise bed capacity and improve storage, educational and bathroom facilities.
  • Upgrade and improve storage rooms, the loading dock and kitchen.
  • Upgrade information and communication services, electrical services, mechanical plant (air-conditioning), lift services and plumbing and fire safety.
  • Redevelopment of Medical Imaging to improve efficiency and to accommodate the proposed PET/CT scanner.

Where will the new Royal be when we do get it?

The Royal Hobart hospital will be redeveloped on the current site. The State Government has ruled out building a new hospital on any other site including the Railyards.

How will the redevelopment work?

A number of options to redevelop the hospital over an extended period of time have been identified, but will require more detailed planning in consultation with staff and stakeholders.

The preliminary analysis indicates that building a new health facility close to the existing RHH would assist in meeting growing demand, reduce pressure on the RHH and free up space to make redevelopment on the current site more efficient and less disruptive.

For safety, operational efficiency and patient convenience, the proposed new facility would need to be located within a short walking distance of the RHH.

The most effective approach to staged redevelopment of the current site over an extended period of time (e.g. 15-20 years) is likely to be the construction of new hospital buildings along Argyle Street and Collins Street.

Where will the new health facility be?

A decision on where the new facility should be located has not yet been made.

The State Government owned Tasmanian Ambulance Service (TAS) site on the corner of Melville and Campbell Streets has been identified as a possible site, if the other TAS functions can be appropriately relocated.

Further site assessments and consultation will be required before a preferred site can be selected.

What will happen with the Railyards site?

The Brighton Transport Hub Project will see a transfer of much of the transport related activity currently on the Railyards to Brighton. The Railyards site is in public ownership with several short term leases, mostly for transport industries, in place across the site.

While the Sullivans Cove Waterfront Authority has released an urban design strategy which includes desirable features of any future development on the site, no decision on future site usage has yet been made.

How will this impact Tasmania’s health services?

Tasmania’s Health Plan defines the challenges facing the sustainable delivery of health services for Tasmanians into the future.

The role of the Royal Hobart Hospital as a major teaching and research hospital is central to meeting the goals laid out in Tasmania’s Health Plan and this role will not be compromised by the decision to defer construction of a new Royal Hobart Hospital.

The Tasmanian Government remains committed to a new Royal Hobart Hospital and will spend $100 million on high priority works over the next five years to deliver major service improvements and ensure the Royal remains safe and reliable until a new hospital is built.

To find out more visit www.newroyal.tas.gov.au

Or call 6233 4517.