Development & Consulting Ltd
Herts HP3 0HJ
Tel 01442 817217
Fax 01442 879647
Registred in England
Company No 3326461
C21 Herbal Gardens
9 Herbal Hill
London EC1R 5XB
The Allum Medical
|In 1991 we still had functional "Cost Rent"
schemes. This was a neat way of NHS funding of GP new
buildings. Cost rent was the original "Private Finance
Initiative, PFI" that had been set up decades before PFI was dreamt up.
The system was effective way of upgrading most G.P.
surgeries in the 80's and 90's up to about 2002.
G.P.s could build surgeries, within approved specifications, and
charge the PCT for the interest on the full cost of the building.
The Health Authorities of the time (FHSA)s funded a rental
payment, a payment back to the G.P.s (who had arranged the funding of
the building, and usually owned it). The "rent" or
payment was based on the interest rate of the agreed cost. At
that time the cost of building was than a normal commercial rent would
cover. Since then severe cash restraints have restricted the cost
rent scheme. Also property prices have risen faster than building
costs, so a notional rent scheme, that is a simple
commercial rent, will cover the cost of the interest on building costs,
so the original Cost Rent Schemes are less popular, and severely
In recent years even "notional rent" has also come under cash
restraints. PCTs no longer have to pay what the District Valuer
recommends. G.P.s have to take on a big risk on funding new
buildings. Funding for new primary care buildings is drying up
It is likely that in future building costs would be part of the contact
price, as indeed would be the norm in commercial practice.
Separate funding of buildings by the NHS may be a thing of the past.
Dr Gerard Bulger was the lead in designing and financing the building
above, which in 1991 cost £1.04M
The Allum Medical Centre
|We also had experience of
developing an Outpatient Service , and we developed such a "Diagnostic
and Treatment Centre at Bourne Court opposite. It included a
minor operations suite.
Clinic Developed in