The New South Wales government (Australia) and Healthscope have reached contractual close for the  Northern Beaches hospital PPP project in Sydney.

The new 488-bed hospital will be developed on a 6.5 hectare site bounded by Frenchs Forest Road West. Under the design unveiled yesterday, the Northern Beaches hospital will include:

• a 50-space emergency department - an increase on the total 30 spaces that currently exist in Manly Hospital and Mona Vale Hospital;
• 14 operating theatres and six surgical suites;
• state-of-the-art intensive care and critical care units;
• a modern inpatient mental health facility;
• 1,400 car spaces and a helipad.

Healthscope will design, build, operate and maintain the Northern Beaches hospital, with the public part of the hospital being handed back to the NSW Government at the end of 20 years. Healthscope will then continue to operate services for private hospital patients for a further 20 years.

The total project investment is estimated at A$1 billion, A$600 million to develop the new hospital and the remaining A$400 million will be dedicated to road upgrades in the area.

Herbert Smith Freehills has acted as legal adviser to the NSW Government focussing on the health services, delivery and operating term components for the procurement of the Northern Beaches Hospital.

The Northern Beaches hospital will work closely with Mona Vale Hospital, which will provide sub-acute hospital services including palliative care, rehabilitation and aged care, community health and hydrotherapy, a 24/7 urgent care centre and helipad.