Tailored Solutions

In addressing your needs we will always avoid the ‘one size fits all' mentality, preferring to work with you to deliver solutions that meet your specific requirements.

Clients can pick and choose from a menu of service offerings to build the customised service they desire. Having designed their service, they can also choose how they prefer to pay for this. For some, certainty of cost may be what they desire; for others a part fixed and part variable (linked to performance) cost solution may be better.

 

PPP

Since the introduction of PFI to NHS projects in the early ‘90s, Ryhurst has achieved a leading position in the field of Mental Health and Community Care PFI projects.

Ryhurst has now completed 12 individual PFI projects. Operations on the first schemes commenced in 1998 since when the company has gained a reputation for professionalism, pragmatism and performance, as evidenced in its levels of asset availability and service delivery.

We are also actively working with partners on traditional PPP projects. Whether your requirements involve a stand-alone procurement or a strategic partnership such as a community venture Ryhurst would be pleased to work with you to share the risks and rewards.

View our Case Studies here.

 

Partnership Services

Where organisations do not have sufficient in-house resources, have a gap in their skills and competencies or choose to outsource the delivery of estates and property services in part or in full, Ryhurst has the expertise and experience to provide these services. In doing so, Ryhurst's objective is to, ‘develop bespoke solutions in the provision, management and maintenance of health and social care facilities.'

For example, where a project to provide new facilities has been identified, Ryhurst can offer the expertise to progress the project through the development phase to a fully operational building. For further details, please click on any of the selections above.

 

LIFT

When the Government announced the NHS LIFT initiative in 2000, Ryhurst was quick to understand how our experience and expertise aligned with the requirements of a successful LIFT initiative.

Ryhurst has successfully, to date developed six community health centres across two NHS LIFT schemes. We also provide ongoing operational company management and facilities management services on behalf of the LIFT companies.

 

What is STEP?

PFI is no longer viewed as a suitable option for resolving many of the NHS's estate challenges and is no longer seen as Plan A. A lack of funding from the banks has now compounded matters and there seems to be no easy solution in sight.

Is there a plan B?

The Department of Health's guidance 'Transforming Community Services – Enabling New Patterns of Provision' was addressed to PCTs, but makes some strong general points. It also outlines a new ‘OpCo/PropCo' Strategic Estates Development (SED) JV model in which property companies are developed in partnership with operating companies.

This suggestion need not be limited to PCTs.

We are a STEP ahead of SED

At Ryhurst we have already developed a broad strategic estates development model – the Ryhurst Joint Venture Service Targeted Estate Partnership (STEP) - that is flexible enough to apply to all NHS trusts.

Why you should STEP forward

The STEP provides the following key strategic advantages to the Trust:

  • You are in control
  • Your stakeholding is variable, to suit your needs
  • You have a simplified funding option available
  • You don't have to wait – it's not necessary to procure through OJEU
  • We create your property company
  • Your new building(s) can be off balance sheet (important to some Trusts)
  • We form a true partnership to deliver shared objectives

We believe that the STEP provides the best solution to the estates dilemma posed by the collapse of the PFI market. Actually, we believe that the STEP model is a viable option for most Trusts, as an alternative to the PFI or LIFT models, and is bolstered by the DoH's outlined PropCo/OpCo model.

For more information on STEP, follow the links on this page or contact us, in full confidence, by e-mailing here or via the alternatives on the 'Contact us' page of the website.

 

STEP FAQs

What is a Joint Venture Partnership?

A JV involves two or more parties pooling their resources and expertise to achieve a particular goal. The risks and rewards of the enterprise are also shared. There are a variety of JV models but generally a JV can provide:

  • More resources;
  • Greater capacity;
  • Increased technical expertise;
  • Access to new markets;
  • New solutions to financial and operational challenges.

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STEP FAQs

What is a STEP Joint Venture Partnership?

Developed by Ryhurst Limited, a Service Targeted Estates Partnership (STEP) is a form of joint venture aimed at the health and social care market.

Under the STEP model the care organisation and Ryhurst become shareholders in a new company that obtains the investment capital for planned improvements in health and social care facilities.

The STEP company will take responsibility for all capital works related activity and once service delivery has commenced it will manage and maintain this. On completion of the works, the care provider rents the space from the joint venture company.

The STEP company can be structured to deliver a range of services extending to whole estate management solutions on behalf of the care organisation.

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STEP FAQs

Why is this different from PFI, Procure21 or LIFT?

PFI usually involves the public sector securing a private sector partner to finance, design, construct and maintain a new or refurbished building for a specified period. A 'Project Co' Special Purpose Vehicle (SPV) is established specifically for the project and this receives a payment to cover the cost of the building and contracted services by means of a unitary charge. At the end of the contract period, the building is handed back to the care partner, who then assumes all property ownership risks.

Procure21 is a procurement method for publically funded NHS capital schemes. An NHS Trust can select a principal supply chain partner from the Procure21 framework without having to use the OJEU tender process. The costs of developing and funding the scheme are borne by the Trust, though with the comfort of a guaranteed maximum price. All risks of property ownership rest with the Trust from completion of the construction phase.

NHS LIFT is a vehicle for improving primary care facilities. Having selected a private sector partner, the PCT, partner and Community Health Partnerships (on behalf of DH) form a new limited company. Known as a LIFTCo, this company owns and maintains the building and leases the premises to the PCT, GP's, local authority social services, etc. for an agreed period, usually between 25 and 30 years. At the end of the lease the PCT has the option to acquire the building.

Unlike all of the above models, the STEP approach offers both a funding and procurement route for specific projects and an optional whole estate development and management solution. STEP offers a flexible route to risk transfer and an off balance sheet accounting position as well as the ability to tap new sources of capital, reduce revenue costs and meet current/future environmental and energy management targets. The care provider becomes an partner in developing an estate aligned with it service strategy, securing an equitable share in the risks and rewards of property ownership.

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STEP FAQs

Can all care bodies create a JV?

It is our understanding that NHS Foundation Trusts (FT's) can enter into a joint venture arrangement. Indeed Monitor encourages FT's to improve their estate and improve their revenue position by exploring alternative funding routes. PCTs and non FT Trusts will need Secretary of State approval, though the ‘Transforming Community Services: Enabling new patterns of provision' document issued by the Department of Health in January 2009 confirms that joint venture solutions secure the desired estate is an approach the Secretary of State would be supportive of.

Local authorities have the ability to explore infrastructure development and are increasingly using joint venture partnerships for regeneration and improvement. Charities are not subject to public sector procurement rules and can create joint venture agreements within their local governance rules.

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STEP FAQs

Why should my organisation consider a STEP JVP?

The Ryhurst STEP model builds on the positive features of existing procurement and delivery models and addresses the risk and reward imbalance in these, which Ryhurst believe are unhelpful and unsustainable. It achieves this by incorporating features that delivers:

  • Access to capital funding streams not available to public sector care partners;
  • A legal structure that will achieve the off-balance sheet position many public sector organisations are seeking;
  • A shareholding in the STEP company that far exceeds other market models;
  • Separation of service delivery from the property management and development;
  • Shared accountability and an equitable risk and reward balance between the partners;
  • Meaningful input to company strategy and operational activities;
  • Compliance with OJEU procurement rules;
  • Flexibility in both scope and scale of STEP company use;
  • A vehicle to drive asset use and management efficiencies and transfer the considerable risks associated with building, providing and maintaining facilities;
  • A total alignment of partner interests;
  • An accounting and tax structure that protects the care partner's specific status;
  • Flexibility in how the care partner achieves its project specific investment stakes, Transparency of investment returns; and Solutions bespoke to the care body's needs and tailored to meet local circumstances.

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STEP FAQs

Does STEP require an exclusive relationship?

No.

Ryhurst believes the care partner should always be free to decide whether or not it uses the STEP JV to procure new and/or improved premises. The care partner has the flexibility to choose the most appropriate and cost-effective method of procuring and financing each development or service.

Indeed, it is precisely the perceived inflexibility of existing PPP models that has caused many care parties to avoid using them. Some existing funding routes such as PFI may be appropriate for care partners and Ryhurst will continue to fund and develop through this route if required.

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STEP FAQs

How long is a typical STEP contract?

However long the care partner needs it to be.

As the care provider's property partner, the STEP company will exist as long as the care partner needs buildings from which to deliver services, and it chooses the STEP company to provide and manage these. However, it is appreciated that there will be occasions where one, either, or both of the partners may wish to change or dispose of their shareholding in the STEP company and the partnership agreement will include mechanisms for this to be achieved without damaging the care partners services.

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STEP FAQs

How will a STEP help me?

Working in partnership with care organisations, Ryhurst believe the vision for the STEP company should be to deliver an estate that provides our care partner with vibrant fully serviced sustainable health care environments that incorporate the flexibility to support changing service demands. We take as a given that this means we must deliver a highly cost effective, efficient low carbon emissions estate. This will involve the STEP company in the following principal activities:

  • Reviewing the current estate against the care partner's service strategy to identify the extent of alignment;
  • Production of detailed plans and layouts for both on and off-site solutions to achieve the service strategy;
  • Acquisition and disposal of land;
  • Procurement and management of supply chain partners to deliver and maintain new facilities;
  • Procurement and management of supply chain partners to refurbish and maintain existing facilities;
  • Procurement and management of soft and hard facilities management services;
  • Identify and secure the funds to invest in new facilities.

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STEP FAQs

Am I "selling the family silver"?

Not unless you want to!

Unlike some models who seek to secure ownership of land and buildings, the Ryhurst STEP has been specifically designed to address the legitimate concerns of our care partners. Recognising the complexity of the statutory obligations faced by many of our care partners and that land an buildings are over a period of time to become surplus, we anticipate that there will be no universal solution to the question about how best value is achieved by the care partner.

Whatever the best organisation specific solution, the partnership agreement will be structured to ensure the care partner has the appropriate rights to suitable compensation in the event land and/or buildings are transferred to the joint venture company or being disposed of.

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STEP FAQs

How is this funded?

As indicated earlier, the Ryhurst STEP has been structured to allow the care partner to use its own funds to develop and/or improve facilities. However, where these funds are not available, the joint venture company would access capital in the commercial markets utilising mechanisms such as funding competitions to secure the most competitive funds.

In securing funds, factors such as the length of the care partner’s lease, the covenant strength of the care partner and the residual value will determine what percentage of the development cost can be secured. Any shortfall in funds would be provided by the STEP company shareholders, and this shareholder capital could take the form of a mixture of cash, land or a mixture of the two.

In meeting the associated lease costs the care partner will utilise budgets covering FM, energy, capital dividend payments, costs of borrowing etc. Taken together the sum of planned or current spending should allow cover of the lease costs and enable a return on investment.

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STEP FAQs

Does my organisation have to use the Ryhurst supply chain?

No.

Ryhurst has demonstrated an ability to deliver and manage a wide range of PFI, LIFT and PPP projects over the last 12 years. Ryhurst can take responsibility for all aspects of a project from inception, through pre-development activity, the development phase and managing operational buildings. With a long established network of supply chain partners, we do have access to expertise within the Rydon Group and in those situations where a fixed supply chain is considered the best solution we can deliver this. However, we recognise that many of our care partners will not always be comfortable with the fixed supply chain approach. We will therefore deliver a supply chain solution to achieve that objective and meet the care partner's needs.

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STEP FAQs

Why can't I do this myself?

Of course care bodies can raise funds through many routes including government capital and/or grants, targeted estate funds and donations. In the NHS, built-up surpluses and prudential borrowing to an agreed limit may also be possible.

Borrowing from the market at an acceptable rate however may not be as advantageous and in all self funded cases, the care body has the ongoing cost of occupation, repair, renewal and compliance to meet. The borrowing will also sit on the care partner's balance sheet, not an attractive position for all. The Ryhurst STEP solution accommodates all this in a single venture to deliver efficient use of assets and off-balance sheet treatment.

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STEP FAQs

What's the 'catch'?

There really isn't a catch, if it does not work for our partner, it will not work for Ryhurst.

If a care partner is interested in progressing this approach, or indeed, any other means of achieving new facilities from which to deliver improved services, then talk to us. You will find that as a dedicated specialist health company, we have a genuine interest in improving healthcare environments to benefit all, we are passionate about working in partnership and we have a track record of delivering credible solutions in overcoming client challenges and delivering customer value.

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Project Solutions

Whatever the nature of the project Ryhurst’s skilled team will be able to assist

For example, in our LIFT projects Ryhurst assumes lead responsibility for taking projects from concept through to reality. At all stages of the project we assume responsibility for delivering the agreed facility, or works, reporting progress to shareholders and stakeholders.

We will establish and manage strong integrated multi-disciplinary teams to drive the project from conception through the design and development phases, consulting with service users and service deliverers, liaising with statutory authorities and our client, reporting progress and actively seeking solutions to affordability and value for money issues. Once the construction phase starts, our skills allow us to actively manage the construction process and to ensure the transition from construction to operation is as smooth as possible.

Our bidding experience will also allow us to take the lead in developing business cases for access to funding streams and in submitting bids to provide new services.

 

Procurement and Contract Management

Working in the complex PFI sector, Ryhurst has an established expertise in the procurement of: supply chain partners, multi-disciplinary advisors and works and services. This is supported by extensive negotiation experience and a sound working knowledge of the legal aspects surrounding these activities to ensure compliance with a client’s governance rules.

Ryhurst has established numerous special purpose companies as the legal entity for joint ventures and has expertise in the operational management of these companies.

Our contract management experience provides the expertise that will support the management of contracts with a range of service providers. In so doing we can draw on our comprehensive operational contract management and reporting systems and processes. We also have first hand experience of leading benchmarking and market testing exercises.

 

Investment

Ryhurst was established to secure investments in health and care PFI projects and was successful in this market. Its success was based on providing high quality affordable assets and services that exceeded client expectations.

Recently, Ryhurst has expanded its investment strategy to enable the delivery of community heath and care services. Whether the investment is in new facilities or existing ones, Ryhurst will work alongside public and private sector service providers to enable their service delivery.

We recognise the nature of our partner’s existing assets and realise that their requirements for new facilities will not fit easily into a ‘one size fits all’ solution. To overcome this we will seek to add value by developing solutions tailored to their particular circumstances.

 

Asset Management Solutions

In providing a complete asset management service, our approach is to work in partnership to ensure we play an integral role achieving our client’s strategy for the delivery of modern care services.

Our knowledge and understanding of health and care facility design, underpins this activity and our aim of providing these services in such a way as to free clients’ from the burdens of property ownership/management. Whether it is managing the acquisition of a new facility, a capital investment programme, facilities management service providers, or seeking to capitalise on income generating activities, Ryhurst has the right skill and competency to deliver.

In providing this service, a feature of the Ryhurst offer is a willingness to accept risk transfer where this can be assessed. For example, in our PFI projects, Ryhurst accepts the risk associated with the assessment of lifecycle investment costs throughout a contract period. To ameliorate our risk, we actively manage the lifecycle funds producing detailed lifecycle programmes against which to monitor progress.

We also aim to utilise our commercial flair to add value. For example, the disposal of surplus assets can often be an opportunity to unlock latent value. How best to achieve this and maximise the benefits may not always be readily identifiable. Whether the aim is to raise capital, generate cross subsidy funds or secure revenue streams the commercial flair in Ryhurst and its Group sister companies will deliver the optimal solution.