NHS could save £1.5bn through better estates management


The NHS could save £1.5 billion if it managed its estates 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, a more uniform estate and facility management spend.

The NHS Estates 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 1,360,000 sqm of space, equivalent to the entire area occupied by 13.5 Trusts.

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."

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 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.
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