Adrian Powell

“The recent announcements around a £2.7bn funding program for six new hospitals by 2025 and 38 other hospitals to get a refresh by 2030” was raised by Adrian Powell, Head of Property Development of NHS Property Service at our recent Healthcare Property and Development Conference.

This investment pledge comes off the back of a period described as “capital scarce”, by Powell, who’s organisation is responsible for 10% of the NHS’ entire property portfolio. He declared the “need for a long-term plan to allow trusts to deliver projects.” [emaillocker id=”71749″]

The method of funding for NHS property has evolved in recent years. Sustainable and Transformation Partnerships (STP), groups first formed in 2016 who set plans for projects for local trusts, are “the main source of NHS funding” according to Powell. They also set the investment priorities.

In addition, Powell described private capital funding as “plentiful but relatively inaccessible,” with private debt financing being “taken off the table” by former Chancellor Phillip Hammond in 2018, but Powell suggested “something similar might come back.”

Another key source is from what Powell described as “recycled capital”, the sale of disused or outdated estates for development. He also mentioned the key source of “developer contribution from housing schemes”, where developers will often make investments into local facilities to enable bigger schemes.

Rising challenges such as that of social care is also necessitating structural reforms within the NHS, which Powell alluded such as the “There’s been mergers of CCGs (Clinical Commissioning Groups) which I think are quite helpful, allowing more connections with local authorities who are involved.”

High-quality estates are essential to delivering the care that the NHS is world-renowned for and additional funding is not only beneficial, but essential. [/emaillocker]