Attracting investment to redevelop McLaren Vale Hospital - a potential way forward for our community?

Join local residents Michael Baragwanath and Becky Hirst as they discuss the announcement that the McLaren Vale & Districts War Memorial Hospital is proposed to close on 30 June 2023. 

Michael will propose solutions for a potential way forward - and Becky will ask lots of questions about what this could mean for the community. 

In the recent days since the announcement was made to staff, members and the broader community, Michael has identified that there are numerous ways for the hospital to continue to operate, but it would need external investment. Michael says that the good news is that medical facilities are a highly appealing investment to many large-scale funds and developers because of the certainty of income compared to other options.

During this online chat, Michael will put forward what he believes to be a strong case for a hospital to continue to exist in McLaren Vale and to provide something other than aged care facilities.

The population of the McLaren Vale district has increased by 28% from 5,727 to 7,344 residents (ABS: 2011-2021). Further growth is expected with recently approved land subdivisions in McLaren Flat and several higher-density developments completed within the McLaren Vale town centre. Often these new residents are younger families joining our community.  The median age of the area is 47.

Further large-scale housing developments are being contemplated or under development in Aldinga, Seaford and Old Noarlunga, adding thousands of residents to the surrounding area.

There is a proposal to add 48 beds to the Noarlunga Hospital, which will increase the capacity for the south. Still, this hospital is 15 km from McLaren Vale, 18 km from McLaren Flat and 20 km away from Willunga residents, more than 2 times the distance a metropolitan resident needs to travel.

With 25 beds, the current hospital can offer 9,125 occupied bed days (the Fy19 report says that the actual utility of these beds is around half that at 4,550 bed days).

Michael suggests that a review would investigate the following - 

1. The current state of the property.
2. The current use of the hospital.
3. The demand for current services.
4. A cost estimate for restoration for current services.
5. Alternative/additional service requirements for the area
6. A cost/benefit analysis of additional services.

Questions you might be asking

1. What should happen? 

Members should vote NO to any proposal to gift the land and hospital to its neighbour. The aged care facility is exceptionally land inefficient and does not have capabilities in developing and managing hospitals or allied health services relevant to 75% of the community.

2. What else should happen?
 
People who are not members of the hospital should join as soon as possible. While it is not possible to participate in the vote if it is held on the 28th of April it may be possible to call a special meeting, engage in corporate action against the board, seek injunctive relief from the courts or other activities to prevent the sale until either a better solution is found or a public report is issued endorsing the proposed plan of action.

3. What if the current board resigns? 

We would simply call for members to take up board positions. Michael is able to make recommendations of highly qualified persons who could provide services as an interim board (as volunteers) if required, and there are no doubt others in the community who could source interested people. 

4. Can the hospital, a not-for-profit enterprise, engage with a for-profit investor?  

Yes, refer to section 5 of the constitution – powers.

5. What would this look like? 

There are numerous paths forward – the site could be renovated slightly and retained as a 25-bed hospital, developed to increase capacity or modified to add additional services. We do not know yet, we just know how to find out and to make it happen.   

6. What if a review finds that sale/disposal is still the best option? 

That’s possible. The board or new board could proceed with a sale option, it would be Michael's recommendation that such an option be more consultative.

7. How likely is it for this investigation to attract an investor keen on retaining the hospital? 

Michael has already discussed this with a large-scale developer with directly relevant experience – they are keen to proceed.

8. Is this just a way for this Michael character to be paid? 

Michael would like to review the situation, investigate potential alternatives to a sale, present an option to the board AND/OR assist with running the board and appointing fellow directors at no cost. It’s entirely possible that Michael or an associated business could benefit or not. Any conflicts would be disclosed, as would any payments. 

9. And is this just another Becky Hirst show? 

If you haven't been following along, Becky Hirst is just a really passionate member of our community who refuses to accept decisions that feel wrong in her gut! She's a community engagement professional by day so does know how to rally a crowd, but she's in this for the future of the community she has called home for the last 15 years. Becky was a board member of the McLaren Vale & Districts War Memorial from 2013-2017, during which she undertook a short stint as Chair before stepping down to focus on having a baby. 

10. Why did the board not investigate other options? 

It is entirely possible that they did. Attracting external investment is not an easy thing unless you are in that world. We're sure that the board performed to the best of their abilities using the resources available to them.

11. Who's Michael? 

Michael Baragwanath is the head of wealth and investment banking for ASX-listed private equity firm – TIP Group (Team Invest Private Limited, TIP.ASX). Michael is a McLaren Flat resident of 14 years and grew up in Happy Valley. Michael left school early to work in factories in Lonsdale (Walkers, Castalloy and Solar Optical) before working in IT and then financial services. After several years in financial advisory and sales manager roles, Michael was the national manager for Life Insurance for a major bank living in McLaren Flat and commuting to Sydney. Before joining TIP, he spent eight years consulting and managing transactions in Dubai, South Africa, Hong Kong, Malaysian and Australia. He is passionate about leveraging the resources and natural beauty of his home state, South Australia and creating lasting relationships crossing borders, cultures and traditions. Michael is in demand for his knowledge and experience in financial services and has assisted in managing the compliance for several fund managers, retirement savings pools exceeding $ 2 billion in funds under management. Michael holds an MBA with a specialisation in Marketing; he is a qualified Financial Adviser, Credit Consultant and Real estate licensee with a passion for science and technology. Michael is the treasurer and or director for three registered charities, including Life Education SA and currently assists with managing a $70million Public Ancillary fund that donates more than $ 2.5 million per year to other charities. He is currently the lead consultant for the proposed “Keystone Adelaide” tower a $300million CBD development – www.keystoneadelaide.com.au & www.254north.com and the investment manager for Pennington Cliffs Property Trust – the manager and owner of the Penneshaw Pub, hotel and caravan park as well as the developer of the world-class golf course currently under construction.

12. Who's Becky? 

Becky Hirst is a proud McLaren Vale local, living in beautiful Blewitt Springs with her partner Dan and their two young daughters. She is a serial social impact entrepreneur, with her fingers always in many pies. With 24 years worth of experience, Becky is one of Australia’s leading community engagement experts, managing a successful specialist community engagement consultancy with numerous high-profile clients dealing with many politically sensitive topics. Becky published her first book in 2021, For the Love of Community Engagement and is the host of a podcast by the same name. She is one of the co-founders of Global Community Engagement Day which is celebrated annually in over 40 countries. More close to home, Becky is a current board member of the Hills & Fleurieu Landscape Board, has been a mentor for the Flinders University Venture Dorm program and the Fleurieu Future Leaders Program, a Trustee of the micro philanthropy Awesome Foundation Fleurieu, and a member of the Heal & Hustle Council. For many years Becky was known as "The Winey Mum" being the founder of Winey Times, formerly known as Winey Kids. Running Winey Kids and Mummy's Wine Club events in her spare time, Becky changed the face of the McLaren Vale wine tourism by forming a unique consumer-led approach to destination marketing. Winey Kids became one of South Australia's most respected and trusted sources of information for families visiting wine regions, winning countless awards and kudos from the business, wine and tourism sectors alike. 

Join Michael and Becky for an evening of discussion, exploration and new frontiers!