The government announced in its Autumn budget a £22 billion increase in total health and social care revenue and capital funding aimed at easing operational challenges for the NHS including reducing waiting times, increasing capacity, and modernising facilities. This budget presents both challenges and opportunities, as it offers increased funding for critical services and infrastructure but also places pressure to improve efficiency and cost-effectiveness amid ongoing fiscal constraints.
Here, we’ll break down the key highlights and explore how ModuleCo Healthcare’s hire solutions for modular healthcare facilities could be pivotal in supporting the NHS’s evolving needs.
Capital spending is expected to rise by £13.6 billion a 10.9% annual increase however this is to be used across several areas including:
- £1.5 billion for new surgical hubs and diagnostic scanners.
- £70 million for new radiotherapy machines.
- £1 billion for critical maintenance issues, including reinforced autoclaved aerated concrete (RAAC).
- £2 billion for NHS technology to improve productivity and cyber-security; a new fund to upgrade around 200 GP surgeries.
- £26 million to open new mental health crisis centres.
Whilst this is a significant step in the right direction, much more work needs to be done to secure the safety of these facilities for future generations.
The maintenance backlog has seen years of underfunding and currently stands at £11.6 billion. This can have significant impacts on infrastructure, from structural safety to electrical and plumbing systems, hindering patient care, increasing costs, and straining operational efficiency, so it is imperative that this is addressed to ensure that the NHS can deliver quality, reliable care in safe environments.
If NHS Trusts don’t receive the funding they desperately need in the new autumn budget, ModuleCo Healthcare can support by providing flexible leasing models to help NHS Trusts avoid large upfront costs.
Flexible hire offers innovative solutions to NHS Trusts ranging from no minimum term to 15-year agreements all of which can be paid for via a pre-agreed fee. This can make them a perfect solution for both short-term and long-term projects whilst retaining a capital budget that can then be allocated elsewhere.
There are 3 different structures MCH offers which provide additional support to NHS Trusts when it comes to procuring state-of-the-art modular facilities:
- Bespoke Hire Agreements: This structure eliminates the requirement for upfront capital investment, enabling NHS Trusts to access state-of-the-art facilities without needing to secure full funding. By structuring payments, Trusts can distribute costs over an extended period, freeing up capital budgets for other core business activities.
- Managed Service Agreements: Enables a Trust to include both hard and soft facilities management, such as building maintenance, cleaning, security, and pest control, within the repayment structure. This allows for the potential full recovery of VAT on monthly payments.
- Activity Based Revenue Solution: This solution helps NHS Trusts make better use of their revenue budgets. As capital budgets face increasing pressure, using revenue budgets offers Trusts a way to acquire new facilities without needing a Capital Departmental Expenditure Limit (CDEL) allocation. An Activity-Based Revenue Solution enables an NHS Trust to access additional clinical capacity while only paying for the facility when it is actually used with no penalty incurred for non-usage.
The Autumn Budget 2024 has provided some relief, but it’s clear that NHS Trusts must continue to innovate to stretch available resources ensuring their long-term resilience. Flexible hire solutions can offer NHS Trusts high-quality care with improved financial sustainability ensuring the continuation of high-quality care.
We’d love to discuss the topic in more detail and explain more about how both our modular facilities and flexible hire options could benefit our NHS. Get in touch with a member of our team via sales@healthcarehire.co.uk
