Similar yearly savings could be made from improving FM supply chain and equipment procurement, consultant claims

EC Harris has claimed that the NHS could save £1bn a year by improving how it operates its estate and another £1bn from selling off parts of its estate.

The consultant, which offers estate advise to NHS bodies, argues in a new report that while space is being used more efficiently than last year further savings could be made through “rationalising” its supply chain and improving the way it buys equipment and consumable items.

In total, the report estimates that the NHS spends £7bn on its estate every year in energy and running costs.

It says 2.1 million m2 of space is underused or unoccupied, 7.4% of the total, although this is down from over 3m in 2008/9.

If this was sold off, it argues, the NHS could earn over £1bn.

“There may be months of fine tuning the current Health Bill, not least due to the intensifying current opposition. This should not stop legitimate changes targeted at reducing expenditure on the NHS estate and improving service delivery,” it concludes.

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