Implementing the finance solution for a £23m modular ophthalmology facility

SAF Solutions supported modular construction specialists, MTX Contracts with a finance agreement for a £23m surgical ophthalmology and outpatients’ facility at University Hospitals Plymouth NHS Trust.

The SAF team worked in partnership with MTX to develop a funding solution for a new ophthalmic facility as part of Plymouth NHS Trust’s new Royal Eye Infirmary. The Trust’s key driver was to expand current facilities through the addition of new theatres and consulting rooms. The construction of this modular facility allowed the former space used for the REI to be redeveloped into other clinical facilities required by the Trust.

Client Brief:

University Hospitals Plymouth NHS Trust required a bespoke funding solution that responded to a set of highly unique budget limitations. They also needed the ability to reclaim VAT with MTX managing the facility via a tailored Managed Service Agreement.

Given the intricacies of the Trust’s requirements, flexible finance was identified as the ideal solution. Not only would this allow the Trust to redevelop existing hospital estate into new facilities, but the development of a Managed Service Agreement benefits was a key motivator for the Trust when selecting this funding solution.

SAF’s Solution:

SAF Solutions were involved from the outset, working with stakeholders including the Trust’s legal teams, the modular supplier MTX and the local council, to secure the relevant planning permissions for the project.

The Trust had to source a funding solution that responded to their unique approval and budget limitations. The use of a Managed Service Agreement also meant that the Trust could incorporate both hard and soft facilities management including building maintenance, cleaning, security, pest control and other general facilities management into the repayment structure, thereby allowing the monthly payments to be VAT recoverable.

Thanks to SAF’s extensive experience working within the public sector to develop and implement Managed Service Agreements, it was essential for us to work and communicate with stakeholders at all levels to ensure the funding solution met their individual requirements.

This was central in helping to ensure a solution was implemented that provided a favourable outcome for all parties.

Outcome:

The SAF team successfully implemented a bespoke Managed Service Agreement that allowed for the procurement of a new, high-specification modular ophthalmic facility.

Our team was able to structure the repayment profile to align with the Trust’s complex approval limits, helping secure a much-needed facility that will enhance service delivery and outputs.

It was crucial for our team to engage with all stakeholders throughout the project lifecycle  to ensure it was completed seamlessly. The project was handed over to the trust in October 2023 .