Health Workforce & Asset management: Welsh PPP at the crossroads?

Health staff accommodation in Wales: innovative PPP model

The Welsh health authorities….Well the Velindre University NHS Trust again, issued recently a prior information notice for a Public-Private Partnership of a particular nature. This PIN will enable to test the market’s appetite for this type of project and ultimately validate its feasibility.

This time, the aim is to provide accommodation for 700 staff across different sites and within a 30-minute commute.

Interestingly, public service staff accommodation was the rationale triggering the introduction of similar models of PPPs in France in the early 2000’s (with a LOPSI Act of Parliament aiming at procuring accommodation for law enforcement personnel).

Here is a project that marries health workforce retention and well-being, infrastructure gap filling as well as complex contracting based on allocation of tasks to private partners deemed better at providing real estate services:

Betsi Cadwaladr University Health Board is looking to refresh its existing staff accommodation and is seeking a partner to provide over 700 tenants with new or improved accommodation within a 30 minute commute of one of its three acute hospital sites.

 

The accommodation can be provided over time either through new build development, allocation within existing stock or a combination of both. The Health Board would also like the partner to take over the accommodation and facilities management of its 614 residential units currently on the three hospital sites whilst alternative off-site solutions are found/developed.

The innovative twist of the NHS Trust is that it is looking for a private partner to build, finance, operate and rent out the premises (thus being as much a construction company as letting agents) but will look at a variety of financing modalities as the Trust does not want to repay lump sums but is also ready to underwrite a guaranteed level of rental income.

Risk sharing vs guarantees? Your Decide Hub will make sure to keep you informed of this project!