NHS reforms jeopardise future of primary health estate

NHS reforms jeopardise future of primary health estate:

Experts suggest the government may have launched NHS Property Services with an intention to sell it off in future
NHS reforms will result in less local flexibility to manage NHS surplus property, competition between centralised bodies managing NHS estates and concern by private sector investors that future primary care building projects will become more expensive.
The government's controversial decision to abolish primary care trusts – which came into effect from 1 April – has led to concerns among funders over the strength of the new organisations with which they will be contracting.
In 2011, the government created NHS Property Services as a limited company, run by chief executive Simon Holden, to take over the management of the bulk of the primary care estate. In previous reorganisations, NHS property has been passed on to the new local NHS organisations. But much of it is now being transferred to this new, central organisation.
Meanwhile, an existing government agency, Community Health Partnerships (CHP), where Sue O'Connell is chief executive, will take the PCT stakes in NHS Lift companies. These are private sector-led public/private partnerships building new primary facilities.
Banks and investors have raised concerns that these two organisations will have a lower credit rating than the old PCTs, which were backed by central government and were therefore seen as "investment grade".
"As schemes are being developed for head tenants that are limited companies without the benefit of a UK government covenant, it may be harder for developers to get 25-year money for their schemes," said Matthew Newing, a partner at law firm Speechly Bircham, who is working on such deals.
There are also concerns over how NHS Property Services and CHP will work together. "There is a general feeling that we don't need both," said one private sector expert. "These are two UK government-owned companies that are competing in the same space."
Some experts suggest the government may have launched NHS Property Services with an intention to sell it off, along with the estate it manages, at some point in the future. Guardian Healthcare Network