NHS Property Services’ annual report reveals £45.9m in NHS cost efficiencies

  • 23rd January 2024

NHS Property Services (NHSPS) has published its annual report for 2022/23, highlighting the significant progress the organisation has made helping to support patients, prioritise customer care, and drive sustainable services.

Key deliverables made during the financial year by the company, which also marked its 10th year of operating in 2023, include:

  • Achieving £45.9m in annual cost efficiencies
  • Investing £150m in NHS properties and generating £50m through disposals
  • Publishing the first Climate-related Financial Disclosure Report
  • Delivering one of the first net-zero buildings in NHS history
  • Completing 94 new or improved properties as part of its Healthy Places programme
  • Delivering 25 new social prescribing sites to help thousands of patients

Overall, NHS Property Services delivered £45.9m in cost efficiencies for the health service during 2022/23, a 4% increase on the previous year’s performance.

Making savings

And its annual report, published earlier this month, demonstrates that the business, which owns and manages around 10% of the NHS estate, exceeded its initial financial target of £32.5m by over £12m, and has now delivered a cumulative total of over £295m in savings to the NHS since 2017.

The business also increased its investment in the estate this year, with total capital investments of £150m, compared to £135m in 2022/23, delivering improvements to the NHS property portfolio for customers and patients and ensuring its buildings are consistently fit for purpose.

This figure reflects and includes the continued successful disposal of surplus NHS Property Services Limited sites, which are those no longer required by the NHS to deliver commissioned or clinical services, generating £50m of recycled capital investment in its portfolio.

Climate change

Another significant achievement described in the report was the publication of NHSPS’ first Climate Related Financial Disclosure Report ahead of the Government’s 2024 deadline.

It identifies key environmental risks that could impact the portfolio and outlines steps being taken to build resilience by integrating climate adaptation into its overall business strategy.

And linked to this the report also highlights how, since the launch of the NHSPS Green Plan in 2021/22, the business has reduced its carbon footprint by 18%, avoiding significant energy price rises for its customers as a result.

In addition, the report also describes how NHSPS completed a further 94 transformational new or improved building projects this year as part of its Healthy Places programme, including the £11m sustainable Devizes Health Centre in Wiltshire for Bath and Northeast Somerset, Swindon, and Wiltshire ICS (Integrated Care System), one of the first net zero buildings in NHS history.

With new sites identified for next year, the programme will extend to over 500 national projects, either completed or in progress, helping a total of 1.3 million patients across the country.

Transforming the estate

And, through its Social Prescribing programme, the report describes how NHSPS has transformed a further 25 vacant or underused indoor and outdoor spaces this year to improve community wellbeing, tackle health inequalities, and help reduce pressure on primary care.

Martin Steele, chief executive at NHSPS, said: “The report evidences how we are realising our ambition to be the estate delivery partner of choice for integrated care boards nationwide, helping our NHS partners develop and deliver their estate strategies and supporting them with the ongoing challenges of COVID-19 recovery and the NHS Long Term Plan transformation.

“These achievements are a testament to the collective work of our colleagues, customers, and stakeholders in leveraging resources and maximising impact, and I am grateful to them for their invaluable feedback and collaboration which have helped shape our organisation’s direction and success.”

Sustainable, quality services

Mark Smith, chief financial officer for NHSPS, added: “I am delighted with the results we have delivered this year, which represent continued progress and consistent, ongoing achievements by teams across the business.

“We are committed to continue driving innovation and efficiency across our operations and to deliver even greater value to the NHS.

“As we embark on another transformative year, I’m confident that NHSPS will continue to seize the opportunities to support the NHS’s evolving needs, improve NHS colleague and patient environments, and deliver sustainable, quality services.”

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