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Multimillion pound contract taken in-house by NHS property company

HSJ reports that the NHS’ property company (NHSPS) has taken the maintenance of many community hospitals and GP surgeries in-house, after years of the services being delivered by a private company. This maintenance of these properties, such as plumbing, electrical, mechanical, water and fire safety systems, and lighting has been contracted-out to Mitie since 2016.

NHSPS is a company wholly owned by the health secretary. Its existence has been mired in controversy by new rental charges for GPs and an inability to act as an effective landlord due to the way in which it was set up.

Mitie’s contract with NHSPS was for three years with the option of two one-year extensions. NHSPS extended the contract for one year in 2019. In 2016 Mitie said the contract in its entirety was worth in excess of £100m, although the figure included the full five-year term. 

Martin Steele, the NHSPS’ new chief executive told HSJ that taking the service in-house meant NHSPS would achieve “significant cost efficiencies” and “greater control over the standard and flexibility” of its service.

Full story in The HSJ, 14 April 2020

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