Amidst a backdrop of budgetary challenges in the NHS, we’ve analysed the latest NHS financial data to pinpoint funding allocations for major healthcare infrastructure projects this year.

This report is designed to unpack funding flows and highlight potential opportunities for suppliers in construction, architecture, engineering, and facilities management (FM) sectors, so you can direct your sales focus towards the most promising regions and organisations.

NHS England's Integrated Care Systems (ICSs) have disclosed capital resource plans for 2023/2024, revealing three key funding sources for healthcare infrastructure:

• New Hospital Programmes and Upgrades: Funding dedicated to building new hospitals and modernising existing buildings
• Community Diagnostic Centres: Funding to develop local diagnostic facilities to enhance accessibility to diagnostic services
• Operational Capital: Funding allocated to repairs and backlog maintenance to ensure the upkeep, safety and efficient operation of healthcare facilities

In the following sections, this report provides a detailed breakdown of the funding allocated in each category, alongside an overview of the projects involved and the types of suppliers required.

1. New Hospital Programmes and Upgrades

The New Hospital Programme (NHP) is a pivotal element of the NHS's Health Infrastructure Plan, dedicated to enhancing the UK's healthcare infrastructure. With over £20b pledged by NHS England, the project aims to establish six large-scale hospitals by 2025, alongside an additional 21 schemes slated for completion between 2025 and 2030. 

Using the NHS Budget Directory, we have identified £737.3m funding allocated to NHS Trusts for New Hospital Programmes and Upgrades this year. To help you identify potential opportunities for your business, we have ranked Trusts by their funding allocation below.

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This list of funding across 40 NHS Trusts illustrates the broad range of opportunities emerging from the NHP for suppliers, and can be used to help you identify your target accounts in the NHS.

Procurement Trends

Drawing insights from recent contracts awarded through New Hospital Programme funding, we've discovered that NHS Trusts are predominantly using these funds to procure the following services:

• Management Consultancy: Strategic consulting from experts in construction, engineering, and public health to ensure efficient project planning and execution
• Construction Works: Construction of new or upgraded hospital facilities, ensuring compliance with healthcare regulations
• Architecture and Planning: Expertise in transport, highway planning, and hospital layout design to align with project objectives.
• Engineering Services: A range of engineering services to meet contemporary healthcare standards and regulations.
  

To help you anticipate the type of opportunities involved, we've highlighted 5 recent NHP contracts below.

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Seizing these opportunities presented by the NHP necessitates a proactive approach. It's imperative to keep a close eye on upcoming projects and tenders, as well as to understand the active suppliers and stakeholders in this landscape. Partnering with the right organisations can significantly enhance your prospects of securing contracts. To get started, sign up with the link below.

The development of Community Diagnostic Centres (CDCs) is a pivotal aspect of NHS England’s strategy to bolster national diagnostic capabilities. With a total commitment of £2.3 billion, the objective is to establish up to 160 new centres across the country by 2025, bringing diagnostic care closer to home and alleviating pressure on acute hospital sites.

Using the NHS Budget Directory, we have identified regional funding plans for the development of 27 CDC's across the NHS, with a combined investment exceeding £292m. Below, we've ranked ICSs by CDC funding to help you identify target regions.

This list of funding illustrates the broad range of opportunities emerging from the development of CDCs, and can be used to help you identify potential target accounts in the NHS.

Procurement Trends

Drawing insights from recent CDC contracts, we've discovered that NHS Trusts are predominantly using these funds to procure services from the following industries:

• Construction Works: Comprehensive construction efforts, from groundwork to final fittings,  essential for establishing CDCs
• Architectural Services: Expert architectural planning to design functional, patient-friendly CDCs.
• ‍Engineering: Ensuring the CDCs are equipped with essential systems such as electrical, plumbing, HVAC, and medical gas systems.
• Medical Specialists: Responsible for integrating diagnostic equipment, healthcare technology systems, and ensuring compliance with regulatory, NHS, and health and safety standards.

To help you anticipate the type of opportunities available in this space, we're sharing 5 recent contracts emerging from CDC programmes below.

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Seizing the opportunities presented by the CDC funding necessitates a proactive approach. Stay updated on upcoming projects and tenders, and familiarise yourself with the active suppliers and stakeholders in this arena. Ready to get started? Use the link below to begin tracking these opportunities and forming valuable partnerships.

3. Operational Capital: Repairs and Backlog Maintenance

Within ICS capital resource plans, "operational capital" is earmarked for "business as usual" spend considered necessary for clinical delivery. This includes backlog maintenance, estate repairs, and other infrastructural needs alongside essential clinical IT and medical equipment. 

The majority share of this budget is typically allocated towards bolstering the structural and operational integrity of healthcare facilities, creating substantial opportunities for:

• Construction Suppliers: Engaging in rectifying structural defects, making necessary repairs or replacements, and possibly upgrading or expanding existing facilities
• Facilities Management (FM): Managing the repair, maintenance, and upgrade of facilities to ensure that buildings and systems operate efficiently and comply with legal and organisational standards
• Engineering Firms: Handling the technical aspects of maintenance, upgrades, and ensuring that systems are functioning correctly and safely
• Specialised Equipment and Material Suppliers: Supplying the necessary materials, tools, and equipment required to carry out the backlog maintenance tasks

Using the NHS Budget Directory, we have identified and ranked the ICSs by their operational capital allocations for 2023/2024, listed below.

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For construction, architecture, engineering and FM suppliers interested in working with the NHS, but not necessarily specialising in New Hospital Programmes or CDC's, this list should be your guide to identifying top target accounts this year.

Competitive Landscape: Top suppliers to watch

To provide a clearer picture of the competitive landscape and help suppliers identify who is capitalising on this “business as usual” spending, we used Stotles supplier intelligence to analyse the top construction suppliers winning NHS contracts since 2018. The following table ranks these suppliers by total reported contracts, to help you identify prominent players in this market.

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Ready to position your company amidst the top suppliers in this space? Stay ahead by tracking upcoming projects, qualifying your target accounts and identifying potential partners and competitors. Take the first step towards winning NHS contracts by signing up with the link below.

Next steps to win NHS contracts

With the insights you've garnered from this report, you're poised to navigate the intricacies of the NHS funding ecosystem. The following steps are not just recommendations - they are essential actions that will position your business at the forefront of this dynamic market.

1) Be specific about the opportunities you want to pursue

Focus on projects that align with your core competencies. Leverage the insights in this report to identify upcoming opportunities that resonate with your areas of experience.

2) Focus on target regions

Different regions have varying priorities and budgets. Use the funding tables in this report to identify a priority list of target accounts for your business.

3) Forge strategic partnerships

Collaborate with suppliers or organisations already engaged with your target accounts. Their established relationships can provide insights into upcoming opportunities and open doors for potential collaborations.

4) Proactively engage decision-makers

Don't wait for tenders to open to the public. Build relationships with NHS stakeholders in advance. Understand their challenges and position your solutions as the answer, ensuring you are top-of-mind when opportunities arise.

For a more detailed guide on navigating the NHS contract landscape, especially in the context of ICS budgets, delve into our 'ICS Budget Playbook: How to identify and win NHS contracts'.

Conclusion

This report exclusively unifies funding for NHS infrastructure projects this year, highlighting monumental opportunities associated with New Hospital Programme, Community Diagnostic Centre and backlog maintenance. By understanding this funding landscape, engaging with key stakeholders, and ensuring compliance with NHS standards, suppliers are well-positioned to secure contracts and contribute significantly to the NHS's healthcare infrastructure transformation.

To take the next step and identify upcoming opportunities, engage with decision makers and fast track your NHS sales, get started with Stotles today.