Will PF2 give health sector schemes a ‘shot in the arm’?

Regionally the value of detailed planning approvals in the Health sector grew in only three parts of the UK last year, the East and West Midlands and the North East of England. However London and the South East remained key markets, accounting for 12% and 17% of UK approvals respectively, alongside the North West and the West Midlands.

There was a similar story for the value of contracts being awarded. The value of underlying contract awards fell 6% during 2012. While contract awards in the fourth quarter of 2012 were 46% down on the previous quarter, this followed an exceptionally strong third quarter performance.

Given the downward trend in planning approvals and contract awards during 2012, we anticipate that project starts will slip back during 2013 as cuts in capital funding and NHS reforms disrupt the flow of new health projects.

Glenigan’s resident health sector expert Cherida Edwards highlights two major hospital schemes that are bucking the trend, having secured the all-important funding from PF2.

There is now clearly high level support for the Midland Metropolitan Hospital project (project ID: 08194445). It will effectively be a pilot scheme for the new PF2 approach in the NHS, and being a pilot for a major national initiative has its benefits.

City Hospital NHS Trust is now updating plans with a view to submitting a refreshed version to the Department of Health in the second half of 2013.  It is likely to take five to six years to undertake the PF2 negotiations and actually build and commission the new hospital.  Some controlled demolition began on the site in December 2012, mainly for health and safety reasons.

In the North West, the luxurious Royal Liverpool Hospital will create as many as 750 jobs during construction of the giant 11 storey hospital.  (Project ID: 05154481)

The hospital will be built to a luxurious standard offering all patients single rooms. Patients in the new hospital will all have en-suite facilities and a flat screen television in their room as standard. TV channels will be free to watch and trust executives have even said there is likely to be some sort of Freeview.

A hybrid planning application has been submitted. Phase 1 - The new Royal Liverpool University Hospital (RLUH) building will be constructed, following the grant of planning permission and discharge of pre-commencement conditions.  This will be a 38 month construction period, anticipated to complete in 2017.

Phase 2 - Comprises the decommissioning and demolition of the existing hospital, Duncan Building and associated structures.

Phase 3 - Involves the completion of the final landscaping, access and car parking scheme to serve the hospital.  It is anticipated that phase 3 will be delivered within a 13 month construction period.

The final phasing of the Biocampus and Cancer Centre will be determined by subsequent Reserve Matters applications.  Carillion have been named as the preferred bidder with financial close expected in 2014.

If you would like any further information on the PF2 hospital projects please contact me: Cherida.edwards@glenigan-old.thrv.uk