A recent report by the National Audit Office found that major government departments (education, health, defence) have an estates spending backlog of more than £10 billion each. The government is now faced with the unenviable task of deciding how to prioritise and tackle that huge backlog. NHS funding for construction is being made available, but some sources may not be immediately obvious. We take a look at some potential options…
In recent yeras, issues such as RAAC and other structural failures have been well documented. Challenges such as closed wards and dilapidated buildings are commonplace across the national estate. There is undoubtedly a need to move fast to remediate some of these issues.
Funds Are Coming
There is some good news: The government has announced extra money to be made available (up to £30 million in some cases) to NHS trusts that perform well. This spending will mean that vital projects in specified trusts and projects will be eligible for extra funding. However, this will be little comfort to those outside the specified groups.
There is also additional funding for issues such as RAAC (£440m) and £100m for upgrades to primary care surgeries and buildings. So, there is hope on the horizon.
Green Plan Funding
Furthermore, there are funds available from green plan funding – which follows from the NHS Energy Efficiency Fund. Our friends at South Central Ambulance Service recently retrofitted their lighting with funding from that fund. They also benefitted from the installation of PV panels – for more on this, take a look at our previous article [LINK].
These opportunities which come as part of the plan to decarbonise the NHS mean that hospitals and trusts can benefit from funding to improve their estates, reduce costs and improve sustainability.
Is the Future Private?
Added to all this, there has been debate around a need to return to private money to get projects moving. Government advisor Paul Corrigan recently noted the NHS must no longer rely on “free capital”. He suggests trusts will have to borrow (and repay) private funding for investment in buildings and technology. The structuring of such a system is less clear. Nevertheless, there seems to be consensus on the need for private investment to tackle health service estate repairs and construction.
How We Help
At Chawton Hill, we’ve helped many trusts ensure best value for money on projects. They range from primary care buildings and general practice surgeries, through to groundbreaking work on ambulance make-ready centres. On make-ready hubs in particular, the team have built up a detailed bank of lessons-learned and best practice information. This helps ensure projects are delivered in the most effective way possible.
Wherever the money comes from, it is inevitable that they will remain limited. We therefore understand the critical need to keep costs under control. Our experience enables us to manage programmes to ensure on-time project delivery. By drawing on our large supply chain knowledge and network, we help clients identify suppliers and contractors who will provide best value.
By sticking to projects we understand in the healthcare sector, we’ve been able to ensure success for Trusts both across the South East and wider UK. We’re also now on frameworks and dynamic purchasing systems. This ensures we’re able to be easily selected by trusts we work with.
Should you need assistance with any of the issues mentioned in this article or a project in the healthcare sector, please get in touch today, we’ll be happy to help.