Alcohol & Other Drug (AoD) Facilities Business Case
Over 30,000 Victorians receive state-funded alcohol and other drug (AOD) services each year, with some 40,000 AOD-related engagements with members of the community recorded in 2018/19.
Demand for all forms of AOD treatment (including phone and online counselling, non-residential and residential-based support and rehabilitation services) is increasing, as are admissions to hospital for both AOD related misuse.
AoD Facilities Business Case
Client: Victorian Health and Human Services Building Authority
Services Primary : Business Case
Services Secondary: Economics & Financial Analysis
Sector: Health
Background
Victorians with AOD dependency issues often cannot obtain timely help as evidenced by long waiting lists, and appropriate support from AOD services, particularly residential rehabilitation, due to lack of available capacity, with shortages being particularly severe in regional areas. This is reflected by Victoria having 66 per cent fewer publicly funded AOD treatment facilities available to its residents on a per capita basis than the national average.
Our Role & Outcome
Alcohol and other Drug rehabilitation centres are an important part of Victoria’s health system, and also play an “early intervention” function for people who are at risk of further health complications or contact with the justice system. Quantification of the extent and nature of this role was an important part of the evaluation of options and the evaluation of a ‘net benefit’ from the proposed investment by the State Government.
Aalto prepared a business case for the development of 100-beds of capacity across four AOD residential rehabilitation facilities located throughout the state, which will deliver targeted treatment programs and transition support to clients entering or leaving AoD services.
The new beds in the Loddon-Mallee, Hume, Melton, and Warrnambool, and an extension to the Westside Lodge at Sunshine Hospital will aim to address growing waiting times and meet demand from increasing admissions at existing sites across the state. The project included economic and financial analysis from Aalto, which was deemed to be viable with a strong economic Net Present Values and Benefit Cost Ratios, indicating a strong return of public benefit from the investment.
The project case identified required capital funding of $105 million over five years to deliver the program, with an additional $7 million per annum required ongoing in operational and life-cycle costs.
Following acceptance of the preliminary business case, the project proceeded to further development in coordination with other regional health capacity programs.
