Outsourcing for FM efficiency gains – your business: our support
As the QIPP initiative continues, there is a general sense that the easier steps to ease costs and achieve the required budget reductions have been taken, and more radical proposals now need to be considered if trusts are to meet the budgetary challenges to come. Will outsourcing help you?
From the estates perspective attention is being drawn to two key areas:
FM contract consolidation
Private sector joint ventures
It is perhaps no surprise that contract consolidation is under the spotlight. Soft and hard FM services across a trust’s estate can sometimes be delivered via a combination of different service providers, which may include internal provision, and provision by neighbouring NHS organisations as well as private sector service provision. Estates teams looking to generate efficiencies into their FM arrangements often find existing SLAs and contracts unclear or unhelpful.
Consolidation into the hands of one provider creates a single structure for contract management, with the opportunity to gain from cost efficiencies arising from aggregated and more valuable service delivery – but only if the right contract is negotiated with the right provider, and is properly managed.
Estates strategies, and in particular the challenges of rationalisation coupled with clinical pathways reconfiguration, are becoming clearer. As these evolve, we have seen that (along the spectrum of possible financially advantageous property deals) trusts can credibly identify potential commercial support that they can provide to property joint ventures with private developers and investors. One of these elements is FM contract consolidation within the joint venture structure itself.
Click here to view our credentials statement Outsourcing and Shared Services outlines the key areas that you may wish to consider more generally in connection with outsourcing.
Additionally, we are pleased to introduce our new value-added offering for NHS trusts: we are developing a series of guidance materials to supplement our routine legal advice by facilitating workshops and signposting the key business issues for your Estates and Finance teams. The first of these, our project planning guidance note: “Outsourcing – the first steps” is now available.
Please contact those named below to obtain a copy of “Outsourcing – the first steps” and to arrange a free initial meeting.