Healthcare Construction Market Report UK 2019-2023 – New Report from AMA

The NHS continues to see a shift away from hospital-based provision towards a community-based model of care, transforming primary care services in line with the NHS Five Year Forward View and the recently published NHS Long Term Plan.   This places greater emphasis on …..

….. Integrated Care and population health, which has been a defining feature of recent NHS policy.

At the same time, against a backdrop of constrained capital investment in the NHS and rising backlog maintenance costs, the nature of healthcare procurement and construction is also changing, following the chancellor’s Budget 2018 announcement that the Government will no longer use PFI and PF2 contracts to fund infrastructure projects.

The cancellation of PFI and PF2 as a means of delivering new healthcare projects going forward is likely to have significant consequences for health sector construction output, with the emphasis now firmly on publicly funded healthcare projects.

There is now an urgent need for investment across the NHS estate in England to ensure healthcare infrastructure is fit to deliver new models of integrated care and the Government has made it clear that it will need to find funding from a range of sources, including from the private sector to help fund future infrastructure projects and to address the £6bn maintenance backlog.

The value of healthcare contracts awarded remained fairly consistent in 2018, up from 2017, though unchanged from 2016 values.   Public hospitals again accounted for the largest share of contract awards in 2018.

Going forward, the planning pipeline remains positive, but operating at a significantly lower level than some other construction sectors and is now mainly concentrated on smaller, lower value extension and refurbishment projects..

The Healthcare Construction Market Report – UK 2019-2023 is available now and can be ordered here.