NHS Trusts, in particular, struggle to access critical infrastructure without the financial strain of large upfront investments, while suppliers of modular construction and medical equipment must navigate the complexities of public sector procurement, often hindered by capital budget restrictions.
SAF’s flexible Pay-Per-Use (PPU) procurement model offers a bespoke solution that benefits both NHS Trusts and suppliers. For the NHS, it allows access to essential facilities and equipment without impacting their Capital Departmental Expenditure Limit (CDEL) or breaching IFRS16 compliance. For suppliers, the PPU model simplifies and accelerates procurement, helping them overcome funding barriers and foster stronger, more sustainable partnerships with healthcare providers.
No Capital? We Have the Solution: Overcoming Capital Constraints and Navigating IFRS16
The implementation of IFRS16 has made it challenging for NHS Trusts to invest in necessary infrastructure, as they must often recognise lease agreements as liabilities and rely on capital budgets for funding. SAF’s PPU model addresses this by using a revenue-based approach, eliminating the need for CDEL allocation and freeing up capital for other critical projects. Fully IFRS16 compliant, it allows Trusts to access facilities and equipment via revenue budgets, ensuring they can invest in critical projects without adding long-term liabilities. For suppliers, the PPU model bypasses NHS capital budget limitations, enabling faster contract closures and stronger relationships with NHS customers.
Scalable and Adaptable Pay Per Use Model
SAF offers flexibility and efficiency through its PPU model, allowing NHS Trusts and suppliers to pay only for what they use. This approach ensures that financial resources are allocated precisely based on operational needs, avoiding unnecessary costs. Whether it’s temporary facilities to manage a surge in patient volume or advanced medical equipment for long-term operations, SAF’s PPU model adapts to a range of requirements.
By linking costs directly to usage, the PPU model provides a scalable solution that grows or contracts with fluctuating healthcare needs. This prevents overspending on underutilised resources and offers greater financial flexibility, allowing Trusts to scale up or down as required without putting strain on their capital budgets. This adaptability empowers Trusts to make faster, more agile decisions, addressing changing patient care needs without the financial burden or long-term liabilities associated with traditional procurement methods.
Benefits of SAF’s PPU Solution for Suppliers
For suppliers of modular construction and medical equipment, SAF’s PPU solution offers a valuable alternative procurement route, helping to accelerate sales and strengthen relationships with NHS Trusts facing capital constraints:
- Streamlined Sales Process: By offering a PPU solution, suppliers can shorten the sales cycle, as the need for CDEL allocation is eliminated. This alternative procurement method helps suppliers overcome capital budget limitations, ensuring projects can proceed without delays linked to funding challenges.
- Strengthened Relationships with the NHS: Suppliers who offer PPU solutions demonstrate a deep understanding of the financial pressures faced by NHS Trusts. This positions them as trusted partners, building long-term relationships grounded in a shared commitment to providing flexible, sustainable healthcare solutions.
- Increased Credibility: Suppliers that respond to the NHS’s complex financial landscape gain increased credibility within the sector. Offering innovative solutions such as PPU enhances their reputation as forward-thinking and adaptable in a challenging market.
- Tailored, Branded Solutions: SAF works alongside suppliers to create bespoke PPU solutions tailored to the individual needs of each NHS Trust or Health Board. This not only benefits the end-user but also enables suppliers to offer a customised, branded procurement option aligned with their sales strategy.
Benefits of SAF’s PPU Solution for NHS Trusts
SAF’s PPU solution provides numerous advantages that directly address both operational and financial challenges facing NHS Trusts:
- No CDEL Utilisation and IFRS16 Compliant: Our PPU model is designed to use revenue budgets instead of capital funds, ensuring compliance with IFRS16 and avoiding any impact on the Trust's CDEL. This means that Trusts can acquire the necessary facilities without adding long-term liabilities to their balance sheets.
- Variable Structure: With SAF's PPU solution, Trusts only pay for facilities when they are actively in use. This funding structure allows NHS Trusts to align costs with actual usage, reducing financial strain and enhancing cost-efficiency.
- Compliance and Transparency: By utilising revenue budgets instead of capital funds, NHS Trusts can advance infrastructure projects while maintaining financial compliance. This ensures transparent financial planning and avoids placing unnecessary burdens on capital resources.
- Rapid Access to Facilities: Time is crucial in healthcare, and our solution allows healthcare providers to swiftly access critical facilities. Modular facilities can be patient-ready in just weeks, helping to address capacity needs and reduce patient wait times with minimal delays.
- Scalable and Adaptable Solution: SAF's PPU model is not just flexible—it’s adaptable. Whether facilities are needed to handle short-term surges or for long-term growth, our PPU solutions allow facilities to scale up or down based on fluctuating patient volumes. This enables Trusts to effectively manage peaks in demand and maintain resilience during busy periods like winter or pandemics.
Proven Success Across the Healthcare Sector
SAF’s flexible funding solutions have been successfully implemented in a variety of recent projects, supporting both NHS Trusts and suppliers in achieving their goals. These projects highlight SAF’s commitment to delivering customised financial solutions that ensure access to critical healthcare infrastructure and equipment.
Financing Essential Equipment for Queen Victoria Hospital NHS Foundation Trust
One of our recent projects involved Queen Victoria Hospital NHS Foundation Trust, where we provided the necessary funding to finance essential upgrades to their medical equipment. Faced with budget constraints, the Trust needed a solution to acquire new, advanced technology without large upfront costs. SAF's funding helped them modernise their equipment while maintaining financial stability, enabling the hospital to continue delivering specialist services with state-of-the-art tools.
Digitising X-Ray Scanners for CVS
In another recent project, SAF worked with CVS to offer a cost-effective solution for digitising their existing X-ray scanners. Upgrading to digital technology was crucial for improving diagnostic capabilities and patient care, but financial limitations posed a challenge. SAF’s funding enabled CVS to implement digital imaging without putting strain on their budget, helping them transition smoothly to more efficient and modern diagnostics.
Developing a £23m Modular Ophthalmology Facility for Plymouth NHS Trust’s Royal Eye Infirmary
One of our largest recent projects was the development of a £23m modular ophthalmology facility at Plymouth NHS Trust’s Royal Eye Infirmary, in partnership with MTX. The Trust needed to expand its ophthalmic services with additional theatres and consulting rooms while redeveloping the old REI space for other clinical needs. SAF provided the funding solution that enabled the project to proceed without requiring a significant upfront investment, helping the Trust enhance its clinical capacity and serve a growing patient population.
