Sandwell Metropolitan Borough Council has granted approval for plans to build the £430m Midland Metropolitan Hospital on Grove Lane in Smethwick, West Midlands, England.
In August, a Carillion joint venture, the Hospital Company, was selected as the preferred bidder by Sandwell and West Birmingham Hospitals NHS Trust to deliver the hospital.
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The project will be delivered in a public private partnership (PPP) under a 30-year concession contract using the UK government’s PF2 model.
Carillion is the lone bidder for the project as Laing O’Rourke-Interserve consortium dropped out in April.
The hospital will bring emergency and acute healthcare for adults and children onto a single site.
Work under the project is expected to start early next year with the aim of completing the 670-bed hospital in mid-2018.
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By GlobalDataSandwell and West Birmingham Hospitals NHS Trust chairman Richard Samuda said: "This is yet another exciting step in the decade long campaign to bring 21st century hospital care to local residents and create an environment that staff can be proud to work within.
"This is the last-but-one step, with the Trust now able to proceed to try and sign a contract, with our preferred supplier. We aim to do that before January 2016."
Carillion expects to invest £16m of equity in the project, which will be built by Carillion at a capital cost of £297m.
The new hospital has been designed to meet the best international and national standards to make it patient focused and to support efficient delivery of high-quality clinical services.
Scheduled to open in 2018, the new hospital will have 15 operating theatre suites and modern diagnostic equipment.
Clinical Commissioning Group accountable officer Andy Williams said: "We are delighted that the Trust has reached this pivotal stage.
"Local GPs and partner organisations have always supported the Midland Met as an essential step towards our vision of more care closer to home and higher standards for complex care."
Image: An artist’s impression of Midland Metropolitan Hospital. Photo: courtesy of Carillion.
