Partnerships \'key\' to optimising healthcare estates

Published: 14-Oct-2013

Estates managers told to \'lift their heads above the parapet\' and work with industry to secure efficiencies

Estates and facilities managers need to ‘lift their heads above the parapet’ and work in partnership with industry to help secure the £4billion worth of efficiencies the NHS is charged with making over the coming years.

If we share ideas and are brave enough to lift our heads above the parapet then there’s a very real opportunity for us to meet some of the challenges we are facing within the NHS

Speakers at this year’s IHEEM Conference, held in Manchester last week, said there was still potential for improvements to the healthcare estate that would help the NHS to run more efficiently and cost effectively.

“If we share ideas and are brave enough to lift our heads above the parapet then there’s a very real opportunity for us to meet some of the challenges we are facing within the NHS such as the restricted funding and changes in services that we are seeing today,” said Simon Corben, business development director at Capita.

“Across the NHS there is some really good stuff happening, but it is not always being shared. Doing things the way we have always done them has got to change.”

And he urged trusts to work alongside industry partners to look at the impact of the whole estate, rather than ‘just salami slicing’.

“The trouble with innovation,” he said, “is that there are always barriers and people who say they can’t do it and put it in the ‘too difficult’ box. We need teams within trusts that are willing to work alongside industry to look at innovative ways to deliver future services.

“Salami slicing is not going to work. It is about breaking down barriers, looking at how the estate is run, and adapting it in a suitable way.”

His comments were supported by Stephen Collinson, managing director of Ryhurst. He said: “My view is that the healthcare estate is underutilised and can still bring efficiencies. Trusts can identify and take away any challenges by working in partnership.

“They need to look for a strategic partner, make the relationship a long-term one, and then they should be able to share the rewards.”

We need teams within trusts that are willing to work alongside industry to look at innovative ways to deliver future services

Ryhurst has carried out studies to find out what NHS trusts are looking for from partners. The key points include a commercial income, specialist expertise, support to make service transformation, and access to capital and finance. They also want faster and longer procurement solutions.

In response to this Ryhurst has developed a joint venture partnership (JVP) model and has already worked with a number of NHS organisations. Under the programme the company does not make any financial gain unless it takes on an element of risk. The two partners then share any rewards.

One contract with a Lancashire trusts has secured savings in soft FM services of more than £1m a year and a reduction in consultancy costs of more than 50%. There has also been a reduction in space requirement and the introduction of Lean working practices. Over five years the efficiency programme will provide efficiencies in the region of £5.4m.

“When you talk about estates it is about a lot more than just looking at where you can make cost reductions,” said Collinson. “NHS trusts need to partner with someone who can help to deliver in all areas.

“There is real potential to reduce wastage in health estates and we believe the non-patient space within developments could be reduced by around 25%.

“The £4billion is there to be had if the NHS looks at its estate in a different way and uses more partners to ensure it is operating as intensively and efficiently as possible.”

The NHS is going through a sustained period of change against a backdrop of cash problems that will reflect on backlog maintenance and my advice is to get a second opinion and work with independent consultants

As well as finding areas where efficiencies can be made, trusts also have the added pressure of ensuring the estate remains fit for purpose, with several high-profile negative incidents hitting the headlines recently including Pseudomonas and Legionella outbreaks in hospital water systems.

“Problems are coming up thick and fast and we have a major challenge on our hands,” said Capita's Peter Wearmouth.

“The question is how we deal with these issues moving forward when the NHS is strapped for cash but has a range of quality issues it needs to solve.

“The NHS is going through a sustained period of change against a backdrop of cash problems that will reflect on backlog maintenance and my advice is to get a second opinion and work with independent consultants.”

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