NHS England: Delivering productivity through the NHS estate (8 October 2024)

Summary

In 2016, Lord Carter’s report Operational productivity and performance in English NHS acute hospitals highlighted the potential to save £1.275 billion by enhancing estate efficiency across the NHS in England.

This report looks at estate costs and performance in 2022/23 compared to those observed by Lord Carter in 2014/15. It is based on NHS trusts’ annual Estates Returns Information Collection (ERIC) submissions.

Content

Report highlights:

• Over the past 9 years, the cost of occupancy – the total expenses associated with occupying and operating buildings – across NHS secondary care has fallen by £0.24 billion, from £12.2 billion in 2014/15 to £11.9 billion in 2022/23 (in 2022/23 values).
• The number of patients using these facilities each year has increased by 13.8 million, from 123.9 million in 2014/15 to 137.7 million in 2022/23.
• The non-clinical occupied floor area has dropped from 44% to 33% of the total estate, below Lord Carter’s 35% target. With the integration of new technologies and modern working methods, trusts are aiming to further reduce non-clinical space to below 30%.
• The amount of floor area used for each patient attendance has decreased by 7% in the same period, contributing to the lower overall occupancy costs.
• Under-utilised occupied floor area has dropped to 1.9% from 4.4% in 2014/15.
• More than 1,850 energy efficiency schemes have been implemented since 2018/19. 81 new combined heat and power (CHP) units have been installed and 47% of the estate is now using LED lighting.
• Estates and facilities management teams have reduced the ongoing cost of their services by 17% (£2.24 billion or £16 per attendance).