The British Property Federation (BPF) calls on the Government to review the current NHS funding system to enable private capital to address the NHS maintenance backlog, upgrade existing estates, and invest in new buildings.
The Private sector has readily available resources and expertise to improve the NHS estate, helping the Government deliver on its growth ambitions, while simultaneously addressing funding challenges for the NHS.
A lack of investment in NHS buildings means that 21% of primary care premises are described as not fit for purpose by GPs, while secondary care facilities have an £11.6 billion maintenance backlog. At the same time, delivery of the New Hospitals Programme is delayed amid questions over funding.
NHS buildings, from local GP surgeries to hospitals and specialist and acute care, are critical to the health and wellbeing of communities. Effective primary care can reduce pressure and the cost of secondary and acute care by aiding illness prevention and alleviating waiting lists.
A lack of investment in NHS buildings means that 21% of primary care premises are described as not fit for purpose by GPs
Private capital will reduce the burden on public funding (allowing it to be used elsewhere within the NHS), will ensure properties are well-maintained and occupiable, and invest in the decarbonisation of buildings. The Government urgently needs to work with the real estate industry to investigate innovative approaches to funding to enable private investment to upgrade NHS buildings, improve care outcomes, and help with staff retention.
To unlock this private capital the BPF recommends the Government works with them to explore:
- Enabling NHS organisations to effectively utilise their budgets and private capital funding by reviewing spending limits and capital allocations
- Reviewing the primary care valuations process to ensure viable rents that deliver an appropriate return for investors and value for money for the NHS
- Facilitating third party partnership between the NHS and the private sector for the construction and modernisation of both primary care and secondary care estates
- Decentralising estate planning to enable local decision-making, guided by clear national objectives and frameworks that can better respond to local community need
Despite record levels of public investment, the gap between capital need and capital investment continues to widen. This has very real effects on NHS capacity and the ability for healthcare professionals to deliver preventative care.
NHS buildings, from local GP surgeries to hospitals and specialist and acute care, are critical to the health and wellbeing of communities
Melanie Leech, Chief Executive of the British Property Federation, said: "NHS estates are a critical part of ensuring Britain has an efficient and effective healthcare system. By delivering much needed new facilities, upgrading existing buildings, and tackling maintenance issues, communities can receive better and more accessible care, ultimately improving health outcomes."
"The private sector has the resources and capacity to be rapidly deployed in the construction and maintenance of NHS buildings, but the current system isn’t enabling this investment to be fully realised and without it, NHS services will continue to suffer. Reforming existing barriers to inward investment would enable constrained public finances to be spent elsewhere in the NHS, including on staff and equipment, while also helping the NHS reach its sustainability targets," Leech concluded.
Building Better Healthcare reached out to the Department of Health and Social Care for a response.
Despite record levels of public investment, the gap between capital need and capital investment continues to widen
A spokesperson from the Department of Health and Social Care said: "We have inherited a broken NHS, and the hospital estate is crumbling. It is the early stages of the new government and ministers are considering plans for a long-term capital strategy, so that all patients receive care in buildings that are safe and fit for purpose."
"We have also commissioned Lord Darzi to establish the state of the nation's health service and his findings will inform our 10-year plan to radically reform the NHS," the spokesperson concluded.
