Working with modular healthcare specialists, ModuleCo Healthcare (MCH), SAF Solutions developed the finance agreement required to facilitate the procurement of a bespoke 3no theatre and staff accommodation facility worth £11.5m for Swansea Bay University Health Board.
To help combat their significant backlog in elective Orthopaedic surgery exacerbated by the pandemic, Swansea Bay University Health Board required a cost and time-effective solution to their ongoing capacity issues.
With NHS budgets already significantly stretched, the Trust did not have the available capital required to fund the new facility in its entirety. To gain the additional funding, the Trust would have had to embark on a lengthy application process, while still attempting to cope with rising patient demand.
To avoid compromising on the facility due to their budget constraints, the Trust had to source alternative procurement routes and identified a finance agreement as the most effective way to fund the project while maintaining their available capital to reinvest into core activities.
As with all our projects, the SAF team worked closely with the trust to understand their key financial drivers and requirements. From the outset, we engaged with the relevant stakeholders at both MCH and the Trust to ensure everyone understood (and was comfortable with) the proposed finance structure.
We have worked with MCH since 2008 and have built up a fantastic working relationship with their team which ensures a seamless collaboration.
The project was released to tender through the NHS Shared Business Services framework through which MCH was awarded the project. Given SAF’s extensive knowledge of the SBS framework, we worked to develop a bespoke, fully compliant branded 10-year Managed Service Agreement for the project.
We developed a finance agreement that would fund the entire £11.5m project via a structured repayment plan, allowing the hospital to start benefitting from their new facility significantly quicker than applying for additional funding.
SAF’s role was central to the success of the project, working closely with all stakeholders to ensure communications were clear and the overall experience was positive for all parties.
Our role included coordinating the process of monthly drawdowns which allowed MCH to successfully manage cashflow throughout the construction phase.
We are delighted to have supported both MCH and Neath Port Talbot Hospital in developing a Centre of Excellence that will enhance both staff and patient experiences while alleviating pressures due to a lack of clinical capacity.
Given the financial constraints faced by the Trust, it is fair to say that without SAF’s expertise in producing bespoke finance agreements, the project could have been delayed or faced further challenges down the line.
“We were thrilled to have supported MCH on yet another successful project while continuing to grow our portfolio in modular healthcare.
“As the NHS faces increasing challenges, key decision makers will be tasked with exploring and embracing, newer, more innovative ways of working to ensure they can achieve the best outcomes for their staff and patients.
“This project is a testament to the capabilities of modular construction and highlights how flexible finance can work hand in hand to produce favourable outcomes.”
Alan Wilson, Managing Director at ModuleCo Healthcare, said:
“SAF are extremely knowledgeable in financing healthcare construction, and we’re delighted to have worked with them on another successful project.
“We understand the many challenges faced by NHS Trusts and offering alternative procurement routes is an essential way of ensuring that projects such as these can still go ahead when capital purchase is not available.
“With SAF’s in-depth finance knowledge and close collaboration with the key stakeholders, they seamlessly become an extension of our team, helping to ensure positive outcomes. We’re delighted to have worked with them and the Trust to create this modular centre of excellence which I have no doubt will influence the way healthcare facilities are manufactured in the future.”
Looking for First-Class Asset Finance Consultancy?