Healthcare Infrastructure

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Walter Lucas
5 years ago
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Healthcare Infrastructure 2017-2022 September 2017 Peter Ward John

public sector drivers Proven delivery of NHS facilities Depth of

1 Healthcare Infrastructure September 2017 Peter Ward John Laing Investments Independent of supply chain Understanding of public sector drivers Proven delivery of NHS facilities Depth of specialist resource UK s leading public infrastructure equity investor

A diverse range of infrastructure needs STP Capital Framework Commercial project financing & PDC Prelet & leasehold pre-sale Codevelopment with retail & PRS homes Public or private operator leasehold

2 A diverse range of infrastructure needs STP Capital Framework Commercial project financing & PDC Prelet & leasehold pre-sale Codevelopment with retail & PRS homes Public or private operator leasehold sale Technology leasehold concession Project financing supported by nominations agreement Acute hospital redevelopment Short stay rehab & primary care hub Community Hospital & diagnostic centre Primary care, nursing & care homes Better system wide use of technology Rented homes for key workers & extracare Focus on development skills, avoid transactional mindset 2

3 Efficient access to debt capital Equity & delivery obligations Private Placement / Public Bond Ownership & contingent guarantee NHS FT John Laing STP Capital Partnership Local Authority University Investment & On-loans Balance risk, recourse and reward 3

4 Significant potential benefits Improved space utilisation Income for investment in clinical services Flexibility between capital and revenue budgets Reductions in capital and revenue costs Commercial management of assets Access to commercial income streams Better patient experience Improved compliance and risk management Diversification of commissioners A framework for sustainable growth Measurable improvements in outcomes Short, medium and long term returns 4

5 Cambridge Strategic Infrastructure Partnership A long-term partnership between the Trust and John Laing Complementing NHS estate management skills Raising finance for infrastructure investment Delivering operational flexibility to the Trust To give: Patients a better experience Staff a better environment The Trust financial sustainability 5

6 Complementary Skills Infrastructure Partnership Trust Strategic prioritisation Operational planning Understanding of need Insight into trends Political realism John Laing Development financing Capital project delivery Transition management Transparency Delivery resources 6

7 Programme Management Design Construction Trust Private Sector Partner Development project 1 Services Funding Joint Venture Development project 2 Design & Construction Funding Specialists & Advisors Development project 3 Services

8 Comparison to PFI PFI CSIP Finance Turnkey D&C contract Yes Yes Cost of capital 7% 5% Annual cost* 13.5m 9.5m Deed of safeguard Yes No Time from OJEU to MTA PB 30 months 9 months Time from MTA PB to FC 9 months 6 months Time & cost of change Sch 22 process Total Trust flexibility Transparent funding competition Yes Yes *based on 125m loan facility, 30 year lease & 1.7m Hard FM charge 8

9 Initial project the Forum Cambridge 9

10 Benefits Improved space utilisation Income for investment in clinical services Flexibility between capital and revenue budgets Reductions in capital and revenue costs Commercial management of assets Access to commercial income streams Better patient experience Improved compliance and risk management Diversification of commissioners A framework for sustainable growth Measurable improvements in outcomes Short, medium and long term returns 10

11 Lessons learned 1. Accurately assess deliverability 2. Link board objectives to partnership strategy 3. Set the right incentives & key success factors 4. Form a really close team with shared culture & values 5. Mandate strong leadership 6. Agree ways of working up front 7. Identify early projects to prove it works 8. Discuss services first, assets second 9. Build trust with your partner 11

Annual Financial Plan 2018/19. April 2018

Annual Financial Plan 2018/19. April 2018 Annual Financial Plan April 2018 1 Progress to date Assumptions Bridge from 2017/18 to Draft I&E Summary CIPs Cash Capital plan Risks Contents 2 Progress from Draft March plan to final submission The Trust