Investing in the NHS: Empowering the sector to drive productivity, renewal and growth from NHS Providers and PA Consulting offers a route for renewal and regeneration of the NHS estate with big benefits for economic growth and productivity.
Chief executive of NHS Providers, Daniel Elkeles, said: ‘Futureproofing the NHS estate is essential if we are to meet the ambitions of the 10-Year Health Plan.
‘That means treating capital investment not as an expense, but as a catalyst for improving productivity, stimulating innovation and generating better outcomes for patients.
‘It means unlocking progress that is blocked by dysfunctional Treasury and Government departmental rules.'
The report recommends: increasing the share of health spending on capital to reach 10% of DHSC budget by 2035 from the current 6.5% to raise an estimated £8bn at no overall cost to the taxpayer; developing a national investment strategy to aid prioritisation and decision making; delivering on the 10-Year Health Plan's promise to increase capital freedoms for foundation trusts; and working with local authorities to regenerate high streets and bring NHS services closer to patients.
In addition, the report suggests setting up an NHS investment bank for trusts to access transformational investment without needing private debt and encouraging additional investment through third party agreements for a range of developments, including key worker housing, clinical facilities and retail.
The report argues a relatively minor rebalancing of capital and day-to-day spending would have a dramatic impact on the amount of capital available. It says with the right cross-Government support, all the proposed changes could be delivered by 2035 and many of them before the end of this Parliament.
Matthew Taylor, chief executive of the NHS Confederation, supported moving spending towards capital investments and giving foundation trusts the freedom to recycle under-utilised capital assets to reinvest in modern estate and equipment.
He also suggested allowing the Government to allow private capital investment into more parts of the NHS – including the acute sector – in order to build new facilities.
Taylor said it ‘was also important that capital investment continues to flow into primary and community care as part of achieving the Government's ambitions to move care closer to people's homes and provide more preventative interventions'.
