As NHS Trusts grapple with mounting financial constraints and rising patient demand, the Pay-Per-Use model emerges as a game-changing solution, enabling critical infrastructure investments without upfront costs. Amanda Boote, Finance Director at SAF Solutions, explores the transformative potential of this approach for healthcare delivery in the UK.
As financial pressures mount across the public sector, NHS Trusts find themselves grappling with urgent infrastructure and equipment needs. The landscape is increasingly fraught, characterized by rising patient demand, ageing facilities, and staff shortages—all compounded by unclear budget allocations that leave many hospitals with limited options for investment.
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In this challenging climate, the traditional procurement routes are no longer sufficient. NHS Trusts are in dire need of innovative financial solutions that allow for critical upgrades without the burden of upfront capital costs. This is where the Pay-Per-Use (PPU) model comes into play, a solution designed to alleviate these financial strains while enabling Trusts to enhance their operational capabilities.
The PPU model allows NHS Trusts to utilize their revenue budgets for essential investments in infrastructure and technology. By collaborating with suppliers, SAF Solutions implements a tailored funding option based on estimated usage, ensuring that hospitals only pay for what they use. This approach not only aligns with IFRS 16 accounting standards but also empowers Trusts to bypass the limitations of their Capital Departmental Expenditure Limit (CDEL).
The implications of this shift are profound. Delays in critical infrastructure projects can lead to longer wait times for patients and ultimately compromise the quality of care. With PPU solutions, NHS Trusts can avoid these pitfalls by initiating projects and only starting payments once the facilities are operational. This flexibility is essential as Trusts navigate the complex interplay of rising demand and constrained budgets.
For suppliers in the healthcare sector, embracing the PPU model is an opportunity to demonstrate an understanding of the financial challenges faced by NHS Trusts. By providing an alternative procurement route, suppliers can accelerate sales and forge stronger, sustainable partnerships. The PPU model shortens the sales cycle and helps overcome funding barriers, ultimately enhancing supplier relationships and bolstering their reputation as adaptable and forward-thinking.
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By GlobalDataThe benefits for NHS Trusts are clear: increased capacity, improved patient care, and the ability to tackle waiting lists without the prolonged wait for capital budget allocations. With the PPU solution, Trusts gain immediate access to necessary facilities and equipment, allowing for rapid responses to fluctuating healthcare needs.
However, this transition requires a mindset shift within finance departments across the public sector. There may be hesitance around navigating IFRS 16 and other financial complexities, but it is crucial for finance providers to work closely with suppliers and NHS decision-makers. By educating stakeholders about these new solutions and helping them build compliant business cases, we can alleviate concerns and facilitate smoother implementations.
The PPU model presents a scalable and adaptable solution to the pressing challenges faced by NHS Trusts. By linking costs directly to usage, Trusts can better manage their financial resources, responding to patient needs without incurring unnecessary expenses or long-term liabilities.
In conclusion, as we navigate this era of financial constraint, it is imperative that we embrace innovative approaches like the Pay-Per-Use model. This not only addresses the immediate needs of the NHS but also paves the way for a more sustainable future in healthcare delivery. The time for change is now—let’s seize this opportunity to enhance patient care and transform our healthcare system for the better.
UK’s largest modular NHS outpatient facility financed by SAF Solutions
