PwC comments on the National Hospital Programme: plan for implementation

Iain Alexander, health services sector leader at PwC, said: 

“The National Hospitals Programme (NHP) had already been slowed by funding challenges, changes in leadership, updated priorities in RAAC and then a general election and review. The Government’s announcement on the funding waves and programme will bring clarity to the first to market for the priority RAAC and confidence that the programme is moving forward so the market can plan for the delivery phases. However, clearly the extended timetable of delivery is going to be disappointing to some trusts in the later cohorts, including raising questions as to how urgent works will be funded while they await their programme delivery.

“Recognising the capital constraints within the system, the Government also needs to consider the need for backlog maintenance capital as a means to upkeep existing NHS estate, both those delayed projects and the broader estate issues as flagged by Lord Darzi’s review. 

“Over the longer term, and to mitigate risk of future spending reviews derailing this multi year plan, the evolution of the PFI model, perhaps learning from the success of the Welsh MIM structure, could be a tool that the Government is prepared to use. 

“While the need is very much there for these schemes, and many more across the country which are not a part of the NHP, the contractor capacity within the market to deliver these projects is obviously limited, and the reprofiling of the delivery timeline of schemes while disappointing does bring some realism to the programme from a construction perspective. The Government’s continued commitment to hospital 2.0 may also offer further confidence to construction partners who can plan to deliver a pipeline.

“Given the delay and DHSC’s ambitions around moving care into the community as part of the upcoming 10 Year Plan it is important that organisations continue to innovate and review how services are delivered in their local area.”