Alternative Finance Organisation turns public buildings into private property

STP Agony Aunt reports

  • Integrated Healthcare Properties is touting for Integrated Care Systems to buy into its Local Healthcare Alternative Finance Organisation model. This aims to set up Joint Ventures between hospitals and Councils to get land and cheap finance to develop NHS, social care and GP Practice buildings and key-worker housing.
  • Integrated Healthcare Properties company was set up in 2017, with the Newham Clinical Commissioning Group Estates Project Lead as one of four initial shareholders, each contributing £25.
  • Health and Care Space Newham Ltd, the first public sector “partnership” to set up a Local Healthcare Alternative Finance Organisation, has avoided any mention of Integrated Healthcare Properties in its publicity.
  • So has North East London Sustainability and Transformation Partnership, which features Health and Care Space Newham Ltd in the Estates Strategy chapter of its draft response to the NHS Long Term Plan.

A company called Integrated Healthcare Properties is promoting Local Healthcare Alternative Finance Organisations as the “solution” to the reorganisation of NHS, social care and GP estates under Integrated Care Systems.

These estates reorganisations are on the cards because Integrated Care Systems aim to shift many hospital planned care and outpatients services into primary care networks and so-called locality hubs. This looks like a second attempt at the failed Darzi clinics in the 1990s.

The government refuses to provide adequate capital funding for the NHS. So Integrated Healthcare Properties has popped up with its plan for Joint Ventures between hospitals and Councils, to access land and cheap loans from Councils through the Public Works Loan Board, and commercial funding.

Integrated Healthcare Properties’ promo video trumpets that it has set up the first Local Healthcare Alternative Finance Organisation in Newham.

Newham NHS and Council silent about Integrated Healthcare Properties role in their new company

There’s no mention of Integrated Healthcare Properties in NHS and Council publicity about Newham’s Alternative Finance Organisation, Health and Care Space Newham Ltd.

But Integrated Healthcare Properties owns the intellectual property rights to the Alternative Finance Organisation model. And its promo video announces that

“We incorporate and support commercially and operationally, allowing for smooth transition and running of the AFOs”.

Newham Alternative Finance Organisation is part of NE London Sustainability and Transformation Partnership’s Estates Strategy

The existence of the Newham Alternative Finance Organisation (aka Health and Care Space Newham Ltd) is confirmed in the Estates Strategy chapter of NE London Sustainability and Transformation Partnership’s response to the NHS Long Term Plan

It avoids mentioning Integrated Healthcare Properties’ role.

The Estates Strategy Chapter says the Alternative Finance Organisation has been set up to

“access cheaper secure funding from the Council through the Public Works Loan Board and commercial funding.”

Health and Care Space Newham Ltd currently have £200m (£62m from the NHS).

By 2035, Health and Care Space Newham Ltd plan to build 7 health and well being hubs that include minor surgery and treatment rooms (basically Darzi clinics mark 2), 8 GP practices and at least 180 affordable homes for key workers.

By the end of the planned investment they aim to own 23 buildings on sites secured from Newham Council. They have funding from the Council for the first development at Pontoon Dock Health Centre.

Who exactly are “partners” in the new Newham Local Healthcare Alternative Finance Organisation?

Like the NE London Sustainablity and Transformation Partnership, Newham Council’s press release says nothing about the role of Integrated Healthcare Properties in setting up and running the new company, Health and Care Space Newham Ltd.

According to a the press release, Newham Council and East London NHS Foundation Trust signed the Newham Alternative Finance Organisation shareholder agreement on 28 February 2019.

The Companies House website shows that Health and Care Space Newham Ltd was incorporated as a private limited company in March 2018, with £100 capital.

Its current directors are:

Companies House lists East London NHS Foundation Trust and The London Borough of Newham as “persons with significant control”.

Although Newham Clinical Commissioning Group is not mentioned in Companies House documents for Health and Care Space Newham Ltd , a Clinical Commissioning Group webpage claims that “the company” was

“developed in partnership by NHS Newham Clinical Commissioning Group (CCG), Newham Council and East London NHS Foundation Trust (ELFT)”

The Clinical Commissioning Group webpage quotes Jason Kelder, its Estates Project Lead, as “delighted” about “our innovation in Newham.”

Conflict of interest – Integrated Healthcare Properties Director is Newham Clinical Commissioning Group Estates Project Lead

Jason Kelder, Newham Clinical Commissioning Group Estates Project Lead, is also the Integrated Healthcare Properties Finance & Operations Director and project lead for Newham Alternative Finance Organisation.

But Jason Kelder’s bio on the Integrated Healthcare Properties Board webpage says nowt about his current employment by Newham Clinical Commissioning Group:

“Jason has led multiple estates and finance functions within PCTs, STPs and CCGs. Over the last ten years, he has successfully driven £29m of cumulative Qipp savings and built a reputation for delivering estate transformation and cost reduction across healthcare providers. Jason brings stakeholders along the journey and secures engagement with GPs, community & acute providers and PPG’s.”

The (secret) role of Integrated Health Properties in Local Healthcare Alternative Finance Organisations

The Integrated Healthcare Properties website says:

“IHP in effect act as the client estates commissioner taking all aspects of population growth, clinical needs, integration of services and equally important, the capital and recurrent cost of estates into consideration when developing and planning for an AFO solution.

“IHP can guide you through what is effectively a turnkey establishment of an AFO, overseen by a Steering Group of commissioners and shareholders to first produce the business case and then set up useful new governance enablers such as a collaboration committee that ensures the AFO and the local strategic estates plan continue to match and develop over time.”

It adds that the “turnkey solution” is provided by an IHP director project lead – and that in Newham, this is Jason Kelder.

What’s the financial relationship between Health and Care Space Newham Ltd and Integrated Healthcare Properties?

How much has the Newham Alternative Financial Organisation, aka Health and Care Space Newham Ltd, paid Integrated Healthcare Properties for its “turnkey establishment” of the company, its intellectual property rights in the Local Healthcare Alternative Financial Organisation model, and any ongoing role as client estates commissioner, such as participation in a collaboration committee?

Revolving Doors

The Integrated Healthcare Properties Directors all seem to have recently jumped ship from NHS or government jobs – apart from the Finance & Operations Director, Jason Kelder, who apparently continues to be employed by Newham Clinical Commissioning Group, although his bio on the company website says nowt about this.

This means they are able to turn their insider knowledge of the NHS into personal financial gain. This is not right.

Managing director Andrew Bulloch:

“has worked in the NHS and Central Government since 2009, managing and transforming estates exceeding £3bn asset value.
“Before 2009 Andrew spent 20 years in international FT100 & Private Equity companies that included multiple Joint Venture establishments and commercial property portfolio acquisitions & funding exceeding £1bn.”

Integrated Healthcare Properties Director and Integrated Care Strategy Advisor Conor Burke is also Director of CPB Consulting.

Before jumping ship to the private sector, he was Accountable Officer for Barking and Dagenham, Havering and Redbridge Clinical Commissioning Groups, as well as North East London STP Transformation Leader.

From Sept 2018- June 2019 Conor Burke was a Consulting Associate with PwC,

“supporting the delivery of the NHS England Commissioning Capability and Integrated Care System development programmes in South East England and London” .

NHS England’s Commissioning Capability Programme involved Optum and PwC (the so-called OptumAlliance) telling NHS and Local Authority Executives how to make massive cuts to NHS and social care spending, by imposing cost-cutting USA Accountable Care models in their areas. For this, NHS England paid Optum £6,784,671.33.

Integrated Healthcare Properties Director and Integrated Care Strategy Advisor Conor Burke is now also an Advisor for the NHS Transformation Unit, a wholly owned subsidiary of the NHS – although I’ve not been able to find WHICH BIT of the NHS it is subsidiary to.

So much for public sector transparency, accountability and the duty of candour

You’d have no idea of any of this, if you just read the NE London draft response to the NHS Long Term Plan and press releases and publicity from Newham Council, Newham Clinical Commissioning Group and East London NHS Foundation Trust.

The New Public Management dogma of running public services as if they are businesses muddies the waters of democratic accountability.

One comment

  1. Multiple layers of ill-defined “companies” are yet another way of syphoning money out of “Integrated Care Organisations”. Money which will end up in the City of London. It’s a total scam. See Richard Murphy (“The Joy of Tax”!) https://www.taxresearch.org.uk/Blog/2019/08/16/the-burden-of-financialisation-a-case-study-of-a-scottish-police-training-centre/. He has reproduced a diagram showing the 18, yes 18, finance bodies which each have a slice of Strathclyde Police Training and Recruitment Centre (opened in 2002 by Prince Charles). This Centre had a capital value of £17M but will end up being repaid for £111M. PFI, here we come again!

    Liked by 1 person

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