Navigating the financial landscape can be complex, especially when it comes to understanding accounting standards like IFRS16. For businesses operating within the healthcare sector, such as the NHS, staying abreast of these regulations is crucial for financial transparency and compliance.
In this blog, we delve into the common queries posed by the NHS regarding IFRS16 and shed light on how MCH’s pay-per-use solution can alleviate these problems. Understanding these concepts is essential for NHS Trusts to effectively manage their finances and meet regulatory requirements whilst being able to still expand their clinical estate to meet the increasing demand for services.
What is pay-per-use for clinical facilities?
A pay-per-use agreement for clinical facilities is an arrangement where healthcare providers or organisations only pay for a facility based on their actual usage rather than a fixed monthly fee.
What types of clinical facilities can be delivered through a pay-per-use model?
MCH’s pay-per-use agreements can be utilised across our full range of clinical facilities including:
- Theatres
- Wards
- Sterile Services Departments (SSD)
- Imaging facilities
How does pay-per-use work if we do not have the capital budget?
A pay-per-use agreement has the significant benefit of utilising revenue budgets when capital budgets are not available due to other clinical activities taking precedence.
What are the benefits of pay-per-use for clinical facilities?
A pay-per-use agreement can be beneficial for NHS Trusts in achieving cost efficiencies by only paying for the services or resources that are actually utilised, this can lead to significant cost savings over time, allowing Trusts to allocate their budget more effectively and efficiently. Additionally, pay-per-use agreements come with transparent pricing structures, making it easier for Trusts to track and manage their outgoings more effectively. This improves financial planning and decision-making, ultimately contributing to overall cost efficiencies for NHS Trusts.
This can also provide additional flexibility for Trusts to scale their services up or down based on their needs. This can be especially helpful where demand can fluctuate, and facilities may need to adapt quickly.
How do maintenance and servicing factor into the pay-per-use model?
In a busy hospital environment, it is vital for both parties that facilities are maintained and serviced effectively to ensure uptime is kept to a maximum.
MCH provide a tailored and fully compliant maintenance package as part of any pay-per-use agreement, including both reactive and pre-preventative maintenance (PPM).
At a time when additional capacity is needed more than ever, it’s time for NHS decision-makers to embrace innovative approaches to healthcare construction and financing to ensure that patient care remains at the fore.
Find out more about some of the modular projects we’ve successfully delivered via our case studies page, and get in touch to find out how we could support you.
