The British Property Federation calls on the Government to work with the real estate industry to investigate avenues for private capital to deliver long-term solutions for the health service

The British Property Federation (BPF) is calling on the Government to review the current NHS funding system so private capital can be used to address maintenance backlog, upgrade existing estates, and invest in new buildings.

According to the BPF report, Building Healthy Futures: Strengthening our Healthcare Estates, the private sector has readily-available resource and expertise to improve the NHS estate, helping the Government deliver on its growth ambitions, while simultaneously addressing funding challenges.

BPF chief executive, Melanie Leech, 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.”

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 £11.6bn maintenance backlog.

At the same time, delivery of the New Hospitals Programme has been delayed amid questions over funding.

Leech said: “NHS buildings, from local GP surgeries to hospitals and specialist and acute care facilities, 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.

“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 enable investment 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 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

Leech said: “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.”

Click here to read the report in full.