NAO finds NHS Property Services charging framework not working.

Almost £700 million either written off or still unpaid as too many NHS organisations and GPs seem to regard paying for their premises as “optional”. [Tenants were not always fully charged for rent and services before the Service took on ownership and Property Services doesn’t have the same powers as a commercial landlord – see NAO full report] 

Investigation into NHS Property Services Limited 2019 www.nao.org.uk

The Department created the Service in 2011 to manage NHS property. To a large extent the Service has, albeit slowly, succeeded in improving the professional support required, collecting data, streamlining contracts and identifying market rental rates. However, more than eight years later, it still does not have the powers it needs to work effectively, as the Department originally intended, and the accuracy of bills is still disputed. In our view, too many NHS organisations and GPs seem to regard paying for their premises as optional, with almost £700 million either written off or still unpaid. The framework for charging for NHS property is not working effectively and the Department urgently needs to address the fundamental causes of this unsatisfactory situation.

“The system for charging for NHS property is not working effectively and the Department urgently needs to address the fundamental causes of this unsatisfactory situation.”

Gareth Davies, the head of the NAO 2019