Uncertainty surrounding NHS estate continues

Published: 20-May-2011

THE increasing uncertainty surrounding the NHS estate has led to managers fearing for their jobs and the future of their hospitals, experts claim.

An investigation by Sky News has found that the total wasted floor space across the NHS is equivalent to that of Waitrose and Sainsbury's combined. One health centre in Christchurch has been empty for 22 years, with taxpayers still covering the rent. They are also paying for another 24 empty NHS properties around the UK at a cost of around £2.8m a year.

People are worried about the estate, particularly as GPs are not going to want to get involved. They feel caught between a rock and hard place

At a time when the NHS is being forced to make massive financial cutbacks, critics are insisting the issue is addressed. But estates and facilities managers fear a review will lead to the closure of hospitals and the loss of jobs. One of the biggest problems, according to NHS commentator and BBH columnist, Roy Lilley, is that in the 1970s, when the health service was a very different beast, trusts entered into long-term leases on properties, agreeing to forego a break clause to secure lower rents. This seemed sensible because they understandably believed the NHS was not going anywhere and the buildings would always be required.

Lilley told Sky: "Since that time we have had 12 major re-organisations and 17 Secretary of States for Health.

"Someone really hot on estates could maybe have negotiated us out of these leases, but in the mid-90s centrally-controlled estates departments were disbanded and trusts were given their own estates and not all have done a bad job, but health authorities and PCTs were inexperienced."

Contrary to the belief 40 years, the NHS has indeed changed beyond recognition and the direction of travel outlined by the Coalition Government is for this transformation to continue, with care moving from major hospitals to community-based facilities. This, and the legal problems surrounding leases, means estates and facilities managers are left out on a limb.

We will not need a large number of the hospitals we have now. Some re-organisation around how we do business is needed

For a number of years the Department of Health has also been promising a new estates policy, and this is yet to materialise, compounding the uncertainty.

"At a recent estates conference I attended there was a huge amount of concern," said Lilley. "People are worried about the estate, particularly as GPs are not going to want to get involved. They feel caught between a rock and hard place.

"It is controversial, but we will not need a large number of the hospitals we have now, but they can't close because that would be political suicide. However, some re-organisation around how we do business is needed."

A spokesman for the Department of Health said the Government was 'determined' to sort out the problem and ensure NHS estates are not only fully utilised, but also fit for purpose. This follows a report by property experts, EC Harris, which showed a quarter of NHS buildings were unfit for their intended use.

It is really important that the NHS handles the properties it has got in the right way

The spokesman said the issue in Christchurch came about because the original lease, signed by the local health authority in 1972 with landlord J Sainsbury, had changed hands several times since, with rent demands still applicable.

He added: "We are in discussions with the landlord to negotiate the surrender of the lease and guidance has been issued to the NHS to guard against similar bad practice occurring in future leasehold deals."

And Deputy Prime Minister, Nick Clegg, has also waded in on the issue, telling the Sky investigators: "It is really important that the NHS handles the properties it has got in the right way. I think it is easy to be a harsh judge, but if they started selling everything now people would say 'you are cheating the taxpayer' because the market is not good enough.

"Obviously you need to make sure two things happen: patients are properly looked after and the taxpayer is given a good deal"

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