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Thursday 27th October 2016

NHS property sell off could save £2bn

14th October 2010

A new study has claimed that the NHS owns empty or under-used buildings and land that could be sold for £1.45 billion.


And experts suggest this could save a further £521m in revenue costs each year.

Consultancy EC Harris analysed Department of Health data showing 3.3 million square metres of “empty” or “under-utilised” space across the NHS estate.

They say there are large scale inefficiencies within the NHS in use of space.

EC Harris partner and report author Conor Ellis said: “The NHS has to get away from seeing capital as a free good, that you don’t have to think about the cost of or if it can be used more efficiently.”

The £1.45bn figure is the estimated receipt for selling 50% of the redundant NHS space and the EC Harris report states: “From studying the estate we are of the opinion that the NHS contains significantly more land than is necessary and should work to get a proper maximum value out of the assets they are foregoing.”

The consultants recommend NHS trusts should look at getting land re-designated for house building and create land banks and dispose of redundant space when land prices begin to rise again.

NHS deputy chief executive David Flory has told the Parliamentary Health Select Committee that the Department of Health had established a team to look at the efficiency of the NHS estate having already identified potential for savings in this area.

Health Finance Managers Association says that NHS finance directors are already in the process of addressing the issue of estate efficiency.


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