The National Health Service has been warned that an aggressive policy of land disposals could jeopardise its future capability.
According to a report published by the House of Commons public accounts committee yesterday, the NHS should be wary of selling chunks of its £23bn estate.
The report argues that leasing the land and buildings would allow the health service more room for manoeuvre.
The committee pointed to statistics which show that 21% of the properties sold by the estate were for residential use, at a time when the NHS is having to find homes for its staff.
The report said: “Given the price of land, especially in London, and shortages of accommodation for nurses and other essential workers, too aggressive a disposal policy risks high cost in the future as operational needs change.”
The committee added that the estate should pursue a policy of obtaining planning permissions for potential development sites that it wishes to dispose of before putting them on the market.
It highlighted the example of the sale of Napsbury Hospital, which was valued at £66m with planning and £10m without.
The report, based on the findings of the Comptroller and Auditor General, also found that only 28% of NHS Trusts managed their estates to “exemplary standards”, even though as a whole the estate is achieving annual targets.
Sales of land held by NHS Trusts are estimated to exceed £700m over the three years to March 2003.
Last week, Miller Group and Bank of Scotland were given “preferred partner” status in a public private partnership arrangement that will see the NHS become a leading property developer.
The £400m PPP will see the NHS sell 100-120 abandoned hospital and asylum sites for residential development, a total of 4,800 acres (1,943ha).
EGi News 19/09/02
