SAF Solutions worked in close collaboration with modular facilities provider, McAvoy to deliver the finance solution needed to fund 2no. 48-bed modular ward facility for Good Hope Hospital and Heartlands Hospital, part of University Hospitals Birmingham NHS Foundation Trust.
The Good Hope Hospital and Heartlands Hospital, part of the University Hospitals Birmingham NHS Foundation Trust required additional capacity to respond to growing patient demand following the pandemic, ensuring that the quality of care was not compromised.
An offsite constructed solution was identified by the Trust as the most time-effective, with the capability of minimising disruption to a live hospital site whilst also ensuring rapid deployment.
Following a lengthy and competitive tender process via the NHS shared Business Services Framework, the Trust selected McAvoy to deliver 2no. two storey 48 bed wards. With quality of the construction being a key deliverable, McAvoy designed modular building’s that would deliver enhanced energy and fire protection standards and provide the Trust with a truly sustainable and adaptable space.
McAvoy partnered with SAF to provide the commercial expertise utilising the extensive in-house knowledge of complex financial and commercial solutions that were required to secure the procurement of the new 2no. 48 bed wards at Good Hope Hospital and Heartlands Hospital, Birmingham for University Hospitals Birmingham NHS Foundation Trust.
Thanks to SAF’s extensive experience as the UKs leading modular building funder, we were able to utilise our in-depth knowledge of the NHS’ procurement frameworks to develop a bespoke funding agreement that suited the complex financial requirements of the project.
Our long-standing relationship with McAvoy was instrumental in ensuring we understood their needs and challenges to facilitate a seamless transaction not only between SAF and McAvoy, but also between them and the Trust.
Working closely with both McAvoy and the Trust to understand their drivers was central to making this process possible and has strengthened the professional relationship between SAF and McAvoy.
SAF was able to collaborate with McAvoy to develop a commercial agreement facilitating the delivery of 2no. modular 48-bed wards via a ten-year Managed Service Agreement.
The innovative facility is an extension of the existing hospital site, incorporating link corridors to the current buildings, ensuring a seamless continuation of the existing facilities.
It took just 14 weeks from delivery of the first module to handover at Good Hope Hospital and just 18 weeks from delivery of first module to handover at Heartlands.
Philip Green, Commercial Director at SAF, said:
“The project with McAvoy and University Hospitals Birmingham NHS Foundation Trust is a fantastic example of our breadth of knowledge in the modular building sector.
“The complexities associated with this project meant that a fully bespoke solution was required and our extensive experience in developing financial solutions for modular building providers meant we were able to find a quick solution, ensuring the planned delivery time frames could be met.
“We are seeing an influx of NHS Trusts recognising the potential of combining modular offsite construction with funding agreements to procure industry-leading healthcare facilities, utilising our knowledge to ensure a seamless transaction for both our supplier and the end user.”
Martin Daly, Chief Finance Officer at The McAvoy Group, said:
“Rental is often the preferred choice in cases where there may be issues raising the necessary levels of capital required for permanent build. In this instance, the Trust was able to avail of a financial solution through SAF that avoided significant upfront capital expenditure and an accommodation model that allows for extension of the rental period, if necessary, at a later stage.”
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