5. Years of implementation:  2006 – 2008

6. Detailed Description of the Problem: 

Eastern State Hospital was a first state hospital in the United States treating the mentally ill patients. It has several times enlarged it its campus due to the increased number of patients. For this reason a new Geriatric Patients Center, called “Hancock”, (age 65 and more) was established within the Eastern State Hospital.

The Center consisted of five buildings within the campus. However the problem was that the buildings were more than 40-year-old. Because of this and high staff abrasion it has become impossible to run programs smoothly and make comfortable and proper environment to increasing number of patients. The hospital was about to lose its license due to not compliance with the requirements of the Joint Commission on the Accreditation of Healthcare Organizations. The Medicaid status was also threatened as the number of patients per room and the use of three feet tall walls in rooms did not meet regulations.

A feasibility study was carried out in order to determine the most efficient way of dealing with the problem. Outcome of the study was that it would be more advantageous and costly beneficial to build new buildings.

7. Detailed description of problem resolution strategy:

Due to the lack of public finances the decision has been made to establish a public-private partnership (PPP) which would combine the both sectors. Virginia Department of Mental Health, Mental Retardation & Substance Abuse Services (DMHMRSAS) was a representative of the public part. It treats and habilitates individuals and their families whose lives are affected by mental illness. DMHRSAS was approached by Gilbane Development Company to deal with problem. It has a Public-Private Development Group which implements real estate solutions for public sector. All the predevelopment works have been done through consultation with the company and hospital staff in order to make better conditions for employees and patients.

The financial means of the predevelopment expenses were covered by the company as well as some of the development expenses. However, the public sector also paid monthly allowances from schematic design onward.  The overall cost of the project was amounted to 28 million USD. The Gilbane Development Company estimated that the savings from the modern facilities would pay back the costs of construction within 13 years framework.

The facility was completed in one-third the time the project would have taken with traditional way of construction. Moreover, the total price of the project was far less than it would have been under traditional procurement.