Study finds San Francisco medical center is candidate for P3 delivery

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Study finds San Francisco medical center is candidate for P3 delivery

Law firm Nossaman has informed that a study by the Bay Area Council Economic Institute has concluded that the use of a public-private partnership (PPP) to develop the San Francisco Veterans Administration Medical Center (SFVAMC) project is the best option.

The SFVAMC has outgrown its existing, 80-year facility near the Golden Gate Bridge, and is considering building a new state-of-the art building in the city's Mission Bay district, where it would relocate research and hospital operations and form part of UCSF's growing health sciences complex there.

Based on current delays in federal appropriations, the expansion project faces an estimated wait time of 10 to 15 years if delivered through conventional federal procurement methods. However, according to the study, there is an immediate opportunity for the Veterans Administration to start a tender process for through the PPP model.

The study claims that the project could be developed on a design, build, finance, operate, and maintain (DBFOM) basis. However, the use of a PPP model for the project would require changes in federal procurement laws.

The study concludes that a PPP could achieve capital cost savings of at least 20 %, and life-cycle cost savings of 10-30 %, compared to traditional procurement methods.

Established in 1934, the San Francisco VA Medical Center (SFVAMC) has a long history of conducting cutting edge research, establishing innovative medical programs, and providing compassionate care to Veterans. The Medical Center has 104 operating beds and a 120-bed Community Living Center. Primary and mental health care is provided at outpatient clinics in: Clearlake, Santa Rosa, Eureka, Ukiah, and San Bruno. There is a specialized homeless Veterans clinic in downtown San Francisco.

The study was broadly peer reviewed, by Stan Taylor and Patrick Harder of Nossaman.A copy of the Economic Institute's study may be found at:

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