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NHS reorganisation holds property risks, consultancy warns

Healthcare property specialist and infrastructure consultancy Capita Symonds has warned health service managers and potential new providers of “property risks” that it believes are inherent in the new health White Paper’s proposed reorganisation of the NHS (see also Healthcare Estates 2010 conference report, pages 21-28).

Maintenance responsibilities and lease liabilities, in particular, need to be addressed before legislation is finalised and property is transferred to new service providers, the company has warned. “The opportunities are real, but accompanied by inherent risks in existing leases,” warns David Lawrence, healthcare specialist at Capita Symonds. “Typical risks include the tenant’s statutory compliance and duty of care obligations, dilapidations, impairments on rental income, and environmental performance. These risks need to be identified and addressed. There are significant opportunities in marriage value, but only after careful consideration of the leases.” Meanwhile Procure 21+ (see also pages 41-44) framework contractor Willmott Dixon’s head of healthcare solutions, Michael Clarke, says: “While the proposed role of Foundation Trusts makes sense, there is utter confusion around the scrapping of primary care trusts and the new model for local accountability. What happens to the estate? It would be a waste of GPs’ talents to have them maintaining lifts and fire alarms, or keeping track of the latest Building Regulations that impact on the premises they use. These are the responsibilities of specialists. They require the existence of a client with an appropriate overview of the property estate, and the expertise to make it fit-forpurpose through regular maintenance or redevelopment.” He adds: “There is already a £4 million backlog maintenance problem. We will have to work hard just to stand still.” A range of health sector specialists, including those from Capita Symonds, Willmott Dixon, and property consultant DTZ, joined the debate and offered solutions at the Public Property Summit event held at London’s Business Design Centre earlier this month. On the agenda for professionals from both the public and private sectors were “the ownership and efficient management of all property used for public services”, the “practical implications of key policies such as the devolution of power from Whitehall”, and “joined-up service delivery”.

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