Hospital rebuild cost doubles to £1.42bn


An NHS Trust has criticised central government policy after the estimated cost of replacing a crumbling Leeds hospital doubled to £1.42bn.

In a report presented to the Leeds Teaching Hospitals Trust board last Thursday (26 September), a project director for the Leeds General Infirmary (LGI) rebuild criticised the £20bn New Hospital Programme (NHP) strategy.

When plans for the new hospital were unveiled in 2021, the Leeds Teaching Hospitals Trust estimated it would cost £600m. It is now expected to cost around £1.42bn, although the final cost will be agreed after feedback from central government.

Health secretary Wes Streeting announced shortly after coming into office that he would review the previous government’s “unfunded” plans to build a swathe of new hospitals.

Last week Streeting confirmed in a letter that rebuilds of hospitals containing life-expired reinforced autoclaved aerated concrete (RAAC) would still go ahead, but LGI is one of 25 hospitals still under threat.

The trust’s report also criticised the design standards and procurement method imposed by the central government NHP team.

It said that while the trust had planned to procure a main contractor before progressing to the next design stage, the NHP contracting model requires designs to be more finalised before it can make an appointment. The trust said it had highlighted the risks it “considers to be inherent in this approach” to the central government team.

The trust added that while its initial designs had adhered well to the design standards central government published in May, dubbed ‘Hospital 2.0’, it would likely have to spend at least an extra £60m to apply the model fully.

Applying the designs would also separate key clinical functions in the new building, creating a risk that those services could be less efficient, it said.

After the board meeting, local health leaders warned that continued delays would likely result in a further drain on the trust’s finances. The trust estimates that backlog maintenance to the crumbling building will cost more than £630m.

Local MP Alex Sobel said he was concerned about the condition of some of the oldest parts of the hospital, which are “no longer fit for purpose”.

He warned: “The trust is doing what it can to invest in its ageing estate and relocate some of the most affected services, but it will soon reach a point where further relocations are not feasible, and the ongoing maintenance costs are putting significant strain on NHS budgets.”

A Department of Health and Social Care spokesperson said: “We inherited a New Hospital Programme that is undeliverable and unfunded. We will be honest with patients and will put the programme on a sustainable footing.

“Patient safety is our biggest concern, so rebuilds of hospitals built primarily from RAAC, alongside those where the full business case is already approved, will continue as planned. Our review will provide a thorough, costed, and realistic timeline for delivery of the rest of the programme to ensure we can replace the crumbling hospital estate in England.”



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