Capital assets are assets that the owner of the asset intends to hold and derive benefit from for a period of more than one year. These assets include land, buildings, office furniture and equipment, computer hardware and software, as well as vehicles and other operating equipment. The health authorities apply for capital projects that must be approved by the Ministry of Health and Ministry of Finance.
Spending by the health authorities on capital asset purchases for each of the last four years was as follows:
- 2011/12 - $622 million
- 2010/11 - $685 million
- 2009/10 - $677 million
- 2008/09 - $676 million
Exhibit 27 shows the amount of capital expenditures made by the health authorities over the past four years. Important to note is that many health authorities have also engaged in significant, long-term private-public partnerships (P3).
A public-private partnership (P3) is an alternative approach to design, build and maintain public assets. Although P3 projects can involve almost any type of public infrastructure or service, some of the more common P3 projects in the health sector include the design, build and maintenance of hospitals.