果冻影院

There are encouraging signs that underlying health projects are staging a recovery.

While problems remain with the government鈥檚 new hospital programme, health projects at an underlying level (schemes valued below 拢100 million) showed signs of significant growth in the second quarter of the year.

果冻影院鈥檚 construction industry research reveals that the value of underlying projects starts surged by 50% in the three months to June compared to the first quarter of this year.

Healthy starts

Health projects starting on site in the second quarter of this year include a 拢14.5 million MRI imaging centre at Milton Keynes Hospital (Project ID: 20472058). 果冻影院鈥檚 market research shows that Morgan Sindall is carrying out this work.

Elsewhere, Premier Modular has just begun work on a 拢19.8 million extension - known as The Barn - to Maidstone Hospital (Project ID: 22224198).

At the opposite end of the country, Graham Construction is now working on the 拢32 million second phase of an extension to West Cumberland Hospital (pictured) for North Cumbria University Hospital NHS Trust (Project ID: 20315559).

Regional spread

The rise in project starts in the second quarter was spread across the UK with most regions experiencing an increase.

果冻影院鈥檚 economics director Allan Wil茅n explains: 鈥淚n Yorkshire & the Humber, for example, the value of project starts doubled against the previous year to 拢69 million, which accounts for 9% of the total value of project starts in the health sector.

鈥淟ondon also accounted for the same share and the value of work starting on site in the capital grew by 54% compared with 2022 levels to 拢65 million.鈥�

Work starting on site in Yorkshire included a 拢14 million daycare theatre unit at St Luke's Hospital in Bradford (Project ID: 23098797), while in London Graham Construction has begun work on a 拢41 million extension to the School of Public Health at Imperial College (Project ID: 17449495)

Pipeline boost

Work earlier in the pipeline is also improving and the underlying value of detailed planning approvals increased by 37% in Q2 2023 compared to the same stage a year ago. The total value of underlying work given approval was 拢981 million, which was also 12% higher than the first quarter of this year.

Health schemes at an underlying level securing planning approval in the second quarter of this year include a 拢15 million Community Diagnostics Centre in Newmarket for West Suffolk Hospital NHS Trust (Project ID: 23056340).

Plans for a 拢10.9 million adult acute inpatient mental health unit on the site of the former Norton Lea Hospital in Boston also have detailed planning approval (Project ID: 23088860).

Contractor boost?

A recent National Audit Office report has warned about 鈥榖unching up鈥� of projects in the second phase of the government鈥檚 hospital building programme into 2025, which could overload contractors.

With an increase in the number of underlying schemes securing approval according to 果冻影院鈥檚 industry research, more work could now filter earlier into the procurement pipeline to avoid a logjam and provide a timely boost for contractors.