A ‘flexible, cost-effective’ route to extra capacity

The NHS currently faces a number of well-known and difficult pressures — including increasing patient demand, ageing infrastructure, budget constraints, maintenance backlogs, and staffing shortages, in addition to the lingering effects of the COVID-19 pandemic. The need to find innovative and flexible solutions to help the NHS navigate these challenges, while adding high-quality clinical estate to achieve current demand, has thus become increasingly important. The adoption of modular construction, while utilising a usage-based revenue agreement, allows NHS Trusts to access state-of-the-art healthcare facilities without the huge capital investments typically required.

Modular offsite-constructed healthcare facilities delivered via a Pulse solution are not only designed to meet the latest Health Technical Memorandum (HTM) and Healthcare Building Note (HBN) regulatory standards, but are IFRS 16-compliant, providing a crucial lifeline for Trusts operating under tight financial conditions. By offering modern, high-quality, and rapidly deliverable healthcare facilities, this solution can help NHS healthcare providers deliver exceptional care despite the financial and operational pressures they face.

The introduction of IFRS 16 has significantly altered how leases are accounted for on public sector balance sheets, which particularly affects NHS Trusts — by requiring most lease agreements to be recognised as liabilities. With this regulatory change, NHS Trusts no longer see a distinct difference between capital or hire/lease projects; therefore no matter whether the project requires capital allocation, or some form of funding solution, many NHS Trusts now allocate this from the one central Capital Departmental Expenditure Limit (CDEL). This shift has complicated matters further for Trusts that urgently need new infrastructure, but are unable to commit due to the restriction the accounting standard has had on investment decisions.