News Update
NHS Property Services Limited: Points to consider
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27 Jan 2012
In a written statement laid before Parliament on Wednesday, Andrew Lansley formally unveiled the Government’s plans for a new publicly owned property company. In case you missed it, please click here to see the Written Ministerial Statement.
The new company, which has already been established and which will be wholly owned by the Department of Health, is called NHS Property Services Limited and will assume ownership and management of much of that part of the NHS estate currently owned by PCTs. The Health Secretary’s Statement specified that the company’s objectives will be to:
- hold property for use by community and primary care services, including for use by social enterprises;
- deliver value for money property services;
- cut costs of administering the estate by consolidating the management of over 150 estates;
- deliver and develop cost-effective property solutions for community health services; and
- dispose of property surplus to NHS requirements
The Statement goes on to say that the arrangements for NHS Property Services Limited will be finalised in the forthcoming months and we will publish further updates when more information is available.
The part of the PCT estate that is not deemed ‘service critical clinical infrastructure’ or otherwise falls outside the remit of the Department of Health’s Guidance dated 4 August 2011: PCT Estate: Future ownership and management of estate in the ownership of Primary Care Trusts in England is expected to transfer to the new company. It is also clear that existing contractual maintenance and facilities management arrangements will remain in place.
Mr Lansley’s Statement also reiterated the principal effect of the 4 August 2011 Guidance, namely that:
"estate that is clearly linked to the provision of clinical services and mainly occupied by NHS providers for that purpose will be transferred to them’ and that ‘aspirant community foundation trusts, other NHS trusts, and foundation trusts are to be given the opportunity to acquire part(s) of the primary care trust estate deemed ‘service critical clinical infrastructure'"
In the light of Mr Lansley re-affirming the objectives of the 4 August 2011 Guidance, we now expect preparations for transfers of PCT estate to recipient Trusts to continue apace. We are advising PCTs and recipient Trusts on the impact of the 2011 Guidance and are facilitating innovative, collaborative and cost-saving arrangements between NHS Trusts, aimed towards effective sharing of information, a smooth transfer of estate and resolution of local issues.
The following points require consideration:
- it is prudent for estates teams in recipient Trusts to fully understand the properties that are available for transfer not only in relation to immediate service requirements but also as recipient Trusts may in time wish to rationalise these parts of their estate in conjunction with their estate transformation strategy;
- recipient Trusts may be assuming the role of landlord in respect of minority occupations so it is important to understand the basis of such occupations and the implications of inheriting estate where such occupations have not been properly formalised;
- as part of the risk assessment process, we are assisting our clients in connection with the splitting of PCT legal titles where part only is to be transferred to a recipient Trust, applications for landlord’s consent to transfer leasehold estate and the application of the 2011 Guidance to complex multi-occupier and multi-use sites.
It may be that recipient Trusts decide to forego the opportunity of proceeding with these transfers as a consequence of risks identified through this essential due diligence process.
Click here to see comments from our National Head of Real Estate - Graham Lea.
If you would like to discuss the impact of the 4 August 2011 Guidance on your Trust, Mr Lansley’s Statement or the steps that your Trust should consider taking to prepare for the proposed future structure of the PCT held estate then please do not hesitate to contact your principal Hempsons contact who would be delighted to hear from you.
If you would like further information or if you require advice on any of the above, please contact us on: enquiries@hempsons.co.uk
This news update is made available on the basis that no liability is accepted for any errors of fact or opinions it may contain. Professional advice should be obtained before applying the information to particular circumstances.
© Hempsons 2011
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