$118m payment to Serco for hospital with no patients



28 Aug 2014 - Due to the delays in the opening of Fiona Stanley Hospital the Barnett Government has been required to make payments to Serco for a hospital with no patients..

Fiona Stanley Hospital was due to open in April 2014 but will not be fully operational until April 2015.  As a result of the decision to privatise certain functions of the hospital, the Barnett Government has will pay Serco $118million for a hospital with no patients. 

Serco will be paid $66.1m to run the hospital during the delay and phase in period.  In addition they will receive an additional $52.7m for the renegotiations of the original contract.  This figure was revealed in the 2013/14 Mid-year review. 

Update 22/12/2014:

A further $16.7 million will be paid to Serco as a result of the delays in the opening of FSH.  The additional payments were announced in the 2014-15 Government Mid-year Financial Projections Statement. 

The Government has approved an additional $16.7 million in 2014-15 to finalise the contract variation for the provision of pre-operational facilities management services by Serco at FSH.  This additional amount is due to the phased opening of the hospital in 2014-15. (p117)

This brings the total to $134.7 million in payments made to Serco to run a hospital with no patients.