The NHS could save £1.5 billion if it managed its estate better, according to a
new report.
The latest in an annual study of NHS estate resources in England shows that the health service has taken significant strides towards improving the use of its land estate resources, but has made little improvement in achieving a more uniform estate and facility management spend.
The NHS Estate Efficiency Review , produced by EC Harris, shows that with the overall NHS budget deficit estimated at £30 billion, the immediate reallocation of assets within the estate could have a direct impact on vital front-line services.
The current estate surplus of 4.8 per cent represents 1,306,000 sq m of space, equivalent to the entire area occupied by 13.5 Trusts.
The total space in the NHS estate is 27,300,000 sq m, showing a steady overall decline since 2011 when the total area was 29,000,000 sq m.
But the report still shows that the NHS has the opportunity to make at least £1.5 billion in savings.
Conor Ellis, EC Harris’ global head of health, said: “We should applaud the progress made in the NHS. Since 2008 we have seen unused and surplus space in the health service decline by 61 per cent, but there’s still a big opportunity for further savings to be made.
“From our analysis, the current estate has a surplus of 4.8 per cent. In addition, by driving towards the mean average estate performance this would equate to £1.5 billion in potential savings. This is not the maximum possible saving – just what is immediately attainable – and that is money that could be used to fund an estimated 260,000 major front-line operations.”
The fifth NHS Estate Efficiency Review reveals that, since 2008, unused and surplus space within the health service has declined and some
20 of the most efficient Trusts are operating at just under 100 per cent efficiency. However, six of the least efficient Trusts have as much as a quarter
of their space unutilised, including: one North West England PCT; a London Mental Health unit; and two Acute Trusts.
Ellis added: “The best Trusts operate their estates relatively well, the average still cost too much, while the least efficient quarter, in particular, are far from reaching their potential and wasting resources.”
Progress has also been made in increasing the proportion of NHS buildings that have been built since 2005. In 1995, around half of the entire NHS estate was built pre-1948, but that figure has fallen to just 15 per cent now.
The proportion of post-2005 estate has risen steadily over the past five years and now stands at over 20 per cent, a trend which, according to the study, can only enhance the delivery of modern healthcare through improved operational performance, infection control and privacy.
News Story Source: www.fm-world.co.uk/news/fm-industry-news/nhs-could-save-15bn-in-better-estates-management
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