Finance solutions pave the way for a bespoke, modular operating theatre and ward complex

Working with ModuleCo Healthcare and the firm’s manufacturing partner, ModuleCo, SAF supported the successful delivery of a state-of-the-art modular operating theatre and ward complex. The two-storey building comprises four operating theatres, a six-bed recovery suite, a 12-bed inpatient ward and an eight-bed ward. 

Client Brief:

Sitting within a Grade II listed building, The Royal Orthopaedic Hospital (ROH) is based on an 11-acre site with a rich and impressive 200-year history.

The hospital offers elective surgeries on a local, national and international scale and is ranked among the highest in the NHS, with a 96 per cent recommendation rating for positive patient experience. 

To support ROH in maintaining this exemplary reputation, a solution was needed to ensure theatres were not compromised, as the Trust was previously relying on an outdated, non-resilient engineering design. 

Modular offsite construction was identified as the most effective way of solving these capacity issues, however, the Trust also needed a funded managed service solution to allow them to start benefitting from the facility as soon as possible without any initial large capital expenditure. 

SAF’s Solution:

To facilitate the quick turnaround of this project, both in terms of time and cost, SAF supported the implementation of a bespoke funding arrangement including contract documents.

This meant that the overall cost for the works, including the ground and enabling works, development of the facility, equipment, delivery to site and ongoing management of the facility were amalgamated into a monthly service charge, the first of which can be structured to be due on completion of the facility, followed by payments that span across the ten-year period  of the managed service Agreement.

This ten-year agreement eradicated the need for the Trust to find the upfront capital to finance the project in its entirety.

SAF worked closely with and supported ModuleCo Healthcare in understanding the requirements of both the Trust and the clinicians and healthcare workers who would be using the space. This insight was then used to develop a facility that would allow them to continue to deliver their life-saving work.

This integrated funding solution can be adapted to suit the evolving needs of the Royal Orthopaedic Hospital and can be extended or enhanced to align with new requirements.

This option came into its own when the Trust requested a further extension to the facility, adding two more theatres and an 8-bed patient ward with single, en-suite bedrooms. SAF was able to implement a similar agreement and structure in line with the existing package, again eradicating the need for the Trust to find the funding for the entire project.

Outcome:

The use of modular construction in conjunction with an effective, flexible finance solution means that the Trust is now agile enough to respond to changing demands without compromising on service delivery or patient experience.

Through a managed service agreement, delivered by ModuleCo Healthcare and facilitated by SAF , the Trust was able to quickly and efficiently increase much-needed surgical capacity.

Key takeaways include:

• 2,500 more patients treated annually 
• 70 new jobs created for the region 
• 28-week delivery time, from order to handover 

The remarkable scheme was also shortlisted for several industry awards in 2020, including Best Modular Project at the Building Better Healthcare Awards, Healthcare Project of the Year at the Offsite Awards and Offsite Project of the Year at the Building Awards, winning the latter in November 2020. The funding solution was an integral part of this success, with the structured finance agreement providing a refreshed way of increasing surgical capacity, without concerns around securing the additional capital.

Philip Green, Commercial Director at SAF, said of the project: “The use of a flexible Manged Service solution in the ROH project was a pivotal element of its successful delivery. Working closely  with ModuleCo Healthcare, we developed an  agreement that meant the Trust did not need to compromise and could benefit from its new facility significantly quicker than if they had opted for a traditional build option via capital purchase.

“This enables the Trust to accurately forecast ongoing cashflow and funds needed for the facility while also benefitting and being able to effectively reinvest the income generated from the facility very quickly. The entire project was delivered within 28 weeks – one of the fastest delivery times MCH have ever completed for a project of this size.”