Report sets out PPP priorities for the government’s neighbourhood health centres

A new report has called for regional strategic partnerships, longer-term procurement and a balance between standardisation and flexibility as the Government develops its plans for neighbourhood health centres.

Published by the Neighbourhood Health Forum and commercial law firm Bevan Brittan, the report follows a summer 2026 roundtable examining how new public-private partnership (PPP) models could support the delivery of the government’s neighbourhood health centre plans at pace.

PPPs are arrangements in which the public and private sectors work together to finance, build and maintain public infrastructure, including healthcare facilities.

The report draws on the experience of private sector investors, contractors and facilities management providers, whose combined portfolios cover more than £10bn of health infrastructure across 1,400 buildings.

Strategic partnerships

The report recommends a regional strategic partnership model to deliver multiple neighbourhood health projects through a coordinated pipeline, rather than procuring each scheme individually.

It says projects should be demonstrably viable before going to market, with site suitability, planning considerations, accommodation requirements and affordability established early to build investor confidence and limit costly changes.

The report also highlights the need to distinguish between funding routes.

It suggests public capital funding would be better suited to refurbishment and fit-out projects, while private finance should be reserved for new-build schemes.

For private investment to be viable, the report says a project or group of projects reaching financial close would need to be worth around £100m to £200m.

This is based on an assumed pipeline of approximately 150 new-build projects delivered through a public-private partnership (PPP) model.

Longer-term procurement

The report calls for contracts broad enough to accommodate changing healthcare requirements over a 15- to 20-year period, including community health, mental health, social care and other potential facility types.

It also identifies lengthy procurement processes, delays in appointing preferred bidders, approval gateways and planning permission as barriers to delivery.

Standardised contract documentation and risk allocation could help accelerate procurement, provide greater certainty for investors and bidders, and reduce delays.

The report also recommends early contractor involvement to inform design and assess deliverability.

Standardisation and adaptability

The third priority is balancing flexibility with standardisation and affordability.

The report recommends designing buildings for “practical adaptability”, allowing spaces to accommodate changing clinical needs without investing heavily in flexibility that may never be required.

It also supports standardised contract terms, procurement processes, contractor models and, where appropriate, design elements.

A central Government and Department of Health and Social Care (DHSC) delivery unit could oversee regional procurement, maintain consistency and approve departures from agreed standards.

The report says this would require sufficient public sector resources and expertise.

It also highlights the need to address financial risks, recommending that the public sector bear base-rate risk until financial close, with affordability limits allowing headroom for potential rate rises.

Fixed-price construction contracts are supported, with allowances for inflation-related risks before financial close.

“There continues to be huge private sector interest in the Government’s neighbourhood health ambitions but as this new report sets out,” said Sarah Beaumont-Smith, Chair of the Neighbourhood Health Forum.

“There are some important considerations to ensure that the new health PPP model can attract the private sector expertise and investment needed to deliver the plans at pace.”

“We remain hopeful that the key themes in this report are consistent with the new PPP model in development by the Government, and we look forward to further details being brought to market soon.”

Rosemary Jago, Partner at Bevan Brittan, said the Government’s plans would see more acute care shift into community settings.

“As this report sets out, flexibility in structuring a new PPP arrangement will be key, one that is locally determined, a committed pipeline, drawing on lessons learnt from expiry,” said Jago.

The Neighbourhood Health Forum was established in November 2025 and has grown to more than 15 private sector members, including Bouygues UK, Equitix, Eric Wright Partnerships, Fulcrum Infrastructure Group, Galliford Try, gbpartnerships, Infracare, Invesis, Kajima Partnerships, Kier Construction, Robertson Group, Sewell Group, Vercity, Willmott Dixon Developments and Sir Robert McAlpine Capital Ventures.