Healthcare Construction Market - UK 2009-2013

Table of Contents

1. INTRODUCTION 6

2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS 7

3. PUBLIC SECTOR HEALTHCARE IN THE UK 13

• 3.1 OVERVIEW & STRUCTURE OF THE NHS 13
  • 3.1.1 Scotland 13
  • 3.1.2 Wales 13
  • 3.1.3 Legislative Drivers & Governmental Reforms 13
• 3.2 THE PRIMARY CARE MARKET 14
  • 3.2.1 Overview & Primary Care Trusts 14
  • 3.2.2 GP Surgeries & Health Centres 15
  • 3.2.3 Polyclinics 16
  • 3.2.4 Treatment Centres 18
  • 3.2.5 Walk in Centres 19
  • 3.2.6 Dental Provision 20
• 3.3 SECONDARY/ACUTE CARE MARKET 20
  • 3.3.1 Overview & Structure 20
  • 3.3.2 Types of Hospital 21
• 3.4 HEALTHCARE SPENDING IN THE UK 23
  • 3.4.1 Total Healthcare Spending 23
  • 3.4.2 NHS Spending 23
  • 3.4.3 Primary Care Spending 26

4. HE PRIVATE ACUTE HEALTHCARE SECTOR IN THE UK 28

• 4.1 OVERVIEW AND SIZE 28
• 4.2 PARTNERSHIP WITH THE NHS 30
• 4.3 ACUTE HOSPITAL PROVISION & LEADING PROVIDERS 30
• 4.3.1 Private Healthcare Companies 32
• 4.4 PRIVATE DENTAL CARE 33

5. CONTRACTORS OUTPUT IN THE UK HEALTHCARE SECTOR 36

• 5.1 TOTAL CONSTRUCTION OUTPUT 36
  • 5.1.1 Value of Output - Construction New Work 36
• 5.2 CONSTRUCTION OUTPUT BY SECTOR 37
• 5.3 CONSTRUCTION OUTPUT IN 2009 AND BEYOND 38
• 5.4 CONTRACTORS OUTPUT IN THE HEALTHCARE SECTOR 40
  • 5.4.1 Outlook for Healthcare Construction Work 41
• 5.5 CAPITAL EXPENDITURE IN THE NHS 42
  • 5.5.1 England 42
  • 5.5.2 Wales 43
  • 5.5.3 Scotland 43
  • 5.5.4 Northern Ireland 44
  • 5.5.5 Impact of the ' Credit Crunch' on Healthcare Infrastructure 44
• 5.6 HEALTHCARE WORK OUTPUT - GOVERNMENT TARGETS & PROGRESS TO DATE 45

6. PROCUREMENT OF HEALTHCARE CONSTRUCTION WORK 48

• 6.1 OVERVIEW 48
• 6.2 THE PRIVATE FINANCE INITIATIVE 49
  • 6.2.1 Size of PFI Healthcare Market and Progress to Date 50
  • 6.2.2 Leading Players in the PFI Healthcare Market 53
• 6.3 NHS LOCAL IMPROVEMENT FINANCE TRUST (LIFT) 54
  • 6.3.1 Background & Overview 54
  • 6.3.2 Investment in NHS LIFT 54
  • 6.3.3 Scheme Update and Progress to Date 55
  • 6.3.4 Principal Consortia and LIFT Partners 56
  • 6.3.5 Express LIFT - The Future of NHS LIFT 59
  • 6.3.6 LIFT in other Regions 60
• 6.4 PROCURE21 61
  • 6.4.1 Background & Overview 61
  • 6.4.2 Scheme Update and Investment in Procure21 61
  • 6.4.3. Procure 21 in Wales 62
  • 6.4.4 Frameworks Scotland 64
  • 6.4.5 Procure21+ (The Future of Procure21) 64

7. CONTRACTOR PROFILES 66

• 7.1 STRUCTURE AND SIZE OF THE CONTRACTING INDUSTRY 66
• 7.2 KEY CONSTRUCTION COMPANIES AND CONTACTORS 67
• 7.3 PRIVATE SECTOR CONSORTIA IN THE HEALTHCARE SECTOR 69
• 7.4 KEY HEALTHCARE CONTRACTOR PROFILES 71
• 7.5 HEALTHCARE DEVELOPERS 75

TABLES AND CHARTS

• TABLE 1 SUMMARY OF MAJOR CAPITAL SPENDING PROGRAMMES IN THE HEALTHCARE SECTOR BUDGETS BY PROGRAMME 2006-2011 8
• TABLE 2 UK-WIDE PLANS FOR POLYCLINICS (AS AT MAY 2009) NO. OF CLINICS BY AREA 17
• TABLE 3 CURRENT STATUS OF THE INDEPENDENT SECTOR TREATMENT CENTRE PROGRAMME (AS AT MAY 2009) - KEY PROVIDERS / FACILITIES 19
• TABLE 4 COMMUNITY HOSPITAL PROJECTS APPROVED (AS AT MAY 2009) CAPITAL VALUES AND APPROVAL DATES 22
• CHART 5 VALUE OF UK NHS EXPENDITURE 2005-2011 (£ BILLION) 24
• TABLE 6 UK NHS PRIMARY CARE TRUST SPENDING ALLOCATIONS 2006-2011 (£ BN) 26
• TABLE 7 UK TOP 20 PRIMARY CARE TRUSTS BY SIZE OF OPERATIONAL CAPITAL BUDGET 2009-10 27
• CHART 8 PRIVATE ACUTE HEALTHCARE MARKET - % BY SECTOR (£ BILLION) 2007-2008 29
• TABLE 9 LEADING UK PRIVATE HOSPITAL PROVIDERS 31
• TABLE 10 TOP 18 PRIVATE HEALTHCARE COMPANIES BY NUMBER OF SURGERIES RUN 33
• TABLE 11 MAJOR DENTAL COMPANIES IN THE UK BY NUMBER OF PRACTICES - 2007 AND 2009 34
• CHART 12 VALUE OF CONSTRUCTION OUTPUT NEW WORK 2002-2013 (£ BILLION) 36
• CHART 13 VALUE OF CONSTRUCTION OUTPUT NEW WORK BY SECTOR - % BY VALUE 2008 38
• TABLE 14 CONTRACTORS OUTPUT OF HEALTHCARE SECTOR WORK (PUBLIC/PRIVATE) 1998-2008 (£ M) 40
• TABLE 15 NHS CAPITAL SPENDING - 2007-2011 (£ BN) 42
• TABLE 16 HEALTHCARE CAPITAL EXPENDITURE IN WALES 2009-10 ALLOCATION BY TRUST 43
• TABLE 17 CONSTRUCTION ACTIVITY IN THE UK HEALTHCARE SECTOR - PROGRESS TO DATE MAY 2009 47
• TABLE 18 PFI HOSPITAL SCHEMES - BY STAGE OF DEVELOPMENT AND CAPITAL VALUE (AS AT DECEMBER 2008) 51
• TABLE 19 PFI HOSPITALS CUT FROM THE DH HOSPITALS PFI PROGRAMME IN 2007-2009: 52
• TABLE 20 LEADING PFI CONTRACTORS BY TOTAL PFI HEALTHCARE WORK WON (£ M) - TO DECEMBER 2008 53
• TABLE 21 INVESTMENT IN NHS LIFT - WAVES 1-4 (AS AT DECEMBER 2008) 55
• TABLE 22 PROGRESS OF SCHEMES IN WAVES 1-4 OF NHS LIFT (AS AT DECEMBER 2008) 56
• TABLE 23 MAJOR NHS LIFT PREFERRED BIDDERS/CONSORTIA (MEMBERS & SCHEMES)TO DATE 57
• TABLE 24 DESIGNED FOR LIFE: BUILDING FOR WALES - COMPOSITION OF SUPPLY CHAIN PARTNERS 63
• TABLE 25 MAIN PRIVATE CONTRACTORS - BY NUMBER OF EMPLOYEES 2007 66
• TABLE 26 UK' S TOP 20 CONTRACTORS BY GROUP TURNOVER 2007-2008 68
• TABLE 27 TOP 10 CONTRACTORS IN THE HEALTH SECTOR 70
• TABLE 28 PRIMARY HEALTHCARE DEVELOPERS BY NUMBER OF SURGERIES DEVELOPED 77