Strategic Property Management
NHS figures show 1,249 medical facilities in England have seen their rateable values rise by £124.36m or 19.8% in April 2017. Badly affected hospitals include the iconic University Hospital Birmingham and Royal London Hospital. The Maidstone and Tunbridge Wells NHS Trust’s Pembury site is facing an extra £1 m business rates bill.
Some of the country's biggest hospitals are seeing their business rates bill double.
Already facing financial pressure, the 2017 Business Rate rises from new valuations, have added a new dimension to estate planning for the NHS.
We have been working with one of the largest hospital trusts in England to extract value from their estate’s portfolio and offset any rises. Serving a local population of around three quarter of million people they operate five hospitals and community clinics and treat nearly one hundred thousand inpatients a year.
Property disposals are helping to identify space and capital to develop new services.
The Trust is at the forefront of driving a new Health and Social Care Sustainability and Transformation Plan (STP) with their local authority partners. While continuing to deliver quality, safe and accessible services for patients, they know their estate will have to evolve to meet future care needs.
Currently under consultation, the Trust’s early thinking is for two emergency hospital centres which include 24/7 A&E and planned care, one providing specialist services. With a third site dedicated to planned care.
Systematically reviewing every property, Gen² has helped the trust to realise £1.45 million to date from disposal of surplus sites, with another £1 million more in the pipeline. Gen² are responsible for identifying potential; disposals, and then running the programme. Realising an annual saving close to £170,000 on business rates plus further holding costs such a security and insurance.
The disposals are helping to identify space and capital to develop new services, such as a dedicated paediatric physiotherapy area.
For example, Gen² sold unused buildings on a newly developed site through auction at three times the Trust’s asking price. The new facility is treating over 40,000 patients and delivering over 90% of the Trust’s outpatient services.
The strategic estate review includes negotiating buy and lease back deals and identifying land for development.