Parkland Health and Hospital System Comes in US$14 Million Under Budget for New Hospital, Central Plant and Parking Structure Using Project Management Solution
 
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Parkland Health and Hospital System Comes in US$14 Million Under Budget for New Hospital, Central Plant and Parking Structure Using Project Management Solution

Parkland Health and Hospital System (PHHS) is Dallas’ only public hospital, providing state-of-the-art medical services to more than 1 million patients annually. It includes Parkland Memorial Hospital, Community Oriented Primary Care (COPC), Parkland Community Health Plan, and the Parkland Foundation.

Three years ago, PHHS began work on a new $1.27 billion, 3.4 million-square-foot healthcare campus. When completed, it will include an 862-bed acute care hospital, outpatient clinics, parking garage, central utility plant, and other support facilities.

Public funding―including US$747 million in tax and revenue bonds―accounts for a significant part of the project’s budget. PHHS’ commitment to ensuring fiscal transparency throughout the project played an important role in securing overwhelming taxpayer approval for the bond measure.

To execute on this commitment, PHHS created a central project office and standardized on Oracle’s Primavera P6 Enterprise Project Portfolio Management as the platform for managing the massive initiative. PHHS required all internal team members as well as external project partners―including architects, engineers, construction companies, consultants, and contractors―to use the system for scheduling. Today, more than 1,000 professionals, spanning 150 groups and companies, use the system.

More than two years into the project, construction initiatives are running slightly ahead of schedule and under budget, and PHHS attributes an important part of this success to its rigorous project management model, which Primavera P6 supports. For example, the 1,700-space parking garage came in US$6.6 million―approximately 14%―under its US$45 million project. In addition, the primary hospital came in US$8 million under its US$683 million budget.

 
 

 
 

Challenges

A word from Parkland Health and Hospital System

  • "When selecting a project management system for Parkland’s US$1.27 billion new campus, we looked no further than Primavera P6 Enterprise Project Portfolio Management. Quite simply, there is no other system that comes close to its capabilities and industry standing.” – Patrick Casey, Senior Program Controls Manager, New Parkland Campus

  • Ensure on-time, on-budget completion of the health system’s US$1.27 billion new campus, which is the largest hospital construction project in the United States at this time
  • Deliver unprecedented transparency into how public funds are spent on the public hospital construction initiative, fulfilling a commitment made during the bond and tax initiative
  • Enable the public hospital to effectively manage and coordinate schedules for thousands of resources—spanning consultants, engineers, architects, and contractors—to avoid project delays and cost overruns

Solutions

  • Deployed Primavera P6 Enterprise Project Portfolio Management as the foundation for a centralized project office for the Parkland Campus initiative―coordinating thousands of resources and a US$1 billion budget, coming in below projection on two major campus components, and tracking to finish the entire campus under budget and on time
  • Completed a 1,700-space parking garage nearly 14% under budget and came in US$8 million under projection on the new US$683 million acute care hospital 
  • Enabled PHHS to manage the massive project internally―reducing project management costs 40%, when compared to an outsourced model, better preparing it to operate the new facility upon its completion, and ensuring transparency with taxpayers
  • Empowered PHHS to align and centralize design, construction, and project controls using Primavera P6, requiring internal project team members as well as external consultants, contractors, engineers, architects, and other partners―more than 1,000 users from 150 groups―to use a common work breakdown structure
  • Enabled PHHS to create one schedule that manages and aligns all resources and adjusts in real time as the project progresses
  • Integrated Primavera P6 with PHHS’ financial systems, supporting strong budget control and giving stakeholders visibility into detailed cost control analyses on a daily/weekly basis and the opportunity to review budget and commitments weekly with a daily review of variance reports
  • Prevented data discrepancies between the project management and accounting systems to ensure accurate budget data―resulting in only an US$2 reconciliation item on a recent payment cycle for a project with 150 subcontractors
  • Enabled PHHS to consistently meet its goal of paying its primary construction partner in 21 days, allowing the partner, in turn, to commit to paying a subcontractor in just three days versus the standard seven days―ensuring strong relationships with contractor partners and optimal pricing
  • Gained the ability to look well ahead in the project to determine any potential scheduling conflicts, avoiding delays and cost overruns
  • Provided a centralized repository for correspondence, drawings, specifications, requests for information, and more to improve collaboration, extend visibility, and accelerate access to critical information
  • Deployed Primavera P6 elsewhere within the health system’s planning design and construction group for managing additional capital construction initiatives

Why Oracle

The Parkland Campus initiative is an extraordinarily large and complex construction initiative, and PHHS wanted to manage it internally. To achieve this goal, it required a robust and proven project management solution that could support a wide variety of internal as well as external users and enable a unified work breakdown structure for all parties.

“Primavera P6 Enterprise Project Portfolio Management is the industry standard for project management, so it was our first and only choice for the Parkland Campus project,” said Patrick Casey, senior program controls manager, Parkland Health and Hospital System. “We have no room for error on this highly visible and largely, public-financed initiative, and Primavera is helping us to meet our commitments for on-time, on-budget delivery of its components.”

Partner

PHHS selected Critigen LLC, which is a subcontractor to construction and engineering firm CH2M Hill in the Parkland campus initiative, as its Primavera implementation partner. The health system included requirements for its IT implementation partner as part of its contractor request-for-proposal (RFP) process.

“Critigen played an important role in mapping and completing integration of Primavera P6 to our financial environment, as well as for other tools. This integration was vital, as it enables us to link project information in Primavera P6 and financial data elsewhere in the enterprise in near real time―for an accurate view of project budgets and progress. Critigen has consistently delivered valuable insight and technical expertise, and it continues to be involved in managing the master schedule for the healthcare campus initiative,” Casey said.