Funding & Partnership Solutions for NHS Construction Projects

Alternative funding options for the NHS

Securing funding remains one of the biggest challenges facing NHS estate development. With increasing demand for healthcare services, an ageing estate and a significant maintenance backlog, many Trusts are seeking alternative ways to deliver new facilities without relying solely on traditional capital funding.

MTX Contracts has developed a flexible solution for healthcare project funding that helps NHS organisations unlock new healthcare infrastructure while reducing the need for upfront capital investment. Combining funding, design, construction and facilities management within a single delivery model, MTX provides a complete solution that supports NHS estates from initial concept through to long-term operation and accelerates the delivery of much-needed healthcare facilities.

Drawing on more than 40 years of healthcare construction experience, MTX works with NHS organisations to develop practical, transparent solutions that support long-term estate objectives while providing greater certainty around cost, risk and delivery.

Flexible NHS Funding & Delivery Models

The challenge facing many NHS organisations is not identifying the need for new facilities, but finding a viable route to deliver them.

As demand for diagnostic, surgical and community-based services continues to grow, healthcare providers require funding solutions that enable investment in new infrastructure without creating unsustainable financial pressures.

MTX's approach combines healthcare project funding with a fully integrated delivery model. Working alongside specialist funding partners, MTX can help facilitate the delivery of new healthcare facilities without requiring significant upfront capital expenditure from the Trust.

By integrating funding, construction and facilities management within a single solution, MTX provides a practical alternative for healthcare project funding that helps Trusts accelerate estate development while maintaining budget certainty.

Public private partnerships

Public-private-partnership models are becoming an increasingly important part of the conversation around healthcare infrastructure investment.

As the Government explores new approaches to funding healthcare facilities, many NHS organisations are looking for solutions that can help address immediate estate and capacity challenges while supporting long-term strategic objectives.

MTX's Managed Service offering reflects many of the principles being discussed within emerging PPP NHS models, including shared risk, long-term partnership and whole-life asset management.

While the future shape of PPP NHS delivery continues to evolve, MTX is already helping healthcare providers access an alternative route to project delivery through a model that combines funding, construction and ongoing operational support.

Managed Service Solutions

MTX's Managed Service model has been developed to provide NHS Trusts with an alternative route to delivering new healthcare facilities where capital funding may be constrained.

Under the model, MTX works with third-party funding partners to secure the investment required for project delivery. Construction can then proceed without upfront capital expenditure by the client.

Once the facility has been completed and handed over, the Trust makes predictable monthly payments over an agreed term, typically between five and fifteen years. These payments include facilities management services, ensuring the building remains fully maintained throughout the contract period.

At the end of the agreement, ownership of the asset transfers to the Trust.

The model offers several important benefits:

  • No upfront capital outlay
  • Predictable revenue-based payment structures
  • Transfer of operational and delivery risk
  • Facilities management included throughout the contract period
  • Transparent lifecycle costs
  • Potential VAT efficiencies through compliant funding structures

One example is the Surgical Elective Centre at Oxford's John Radcliffe Hospital, where MTX has developed a VAT-recoverable Managed Service solution in collaboration with Oxford University Hospitals NHS Foundation Trust. Structured in accordance with COS 45 guidance, the model enabled the Trust to recover VAT and maximise value throughout the contract lifecycle while avoiding significant upfront capital expenditure.

Modular construction + blended finance + managed services are no longer a “nice to have”, but rather increasingly the ‘go-to’ model for delivering modern healthcare estates.

Supporting NHS Estates from Concept to Completion

A key advantage of the MTX approach is that funding is integrated with project delivery from the earliest stages.

Many projects begin with a Pre-Construction Services Agreement (PCSA), allowing MTX to work alongside Trust teams during concept development and design. This early involvement helps identify opportunities to improve programme certainty, manage risk and develop solutions aligned with both operational requirements and funding objectives.

Following completion, MTX continues to support clients through facilities management services, including planned and preventative maintenance, helping to ensure buildings remain safe, compliant and fit for purpose throughout the Managed Service period.

Frequently Asked Questions

How does NHS construction funding work? +

NHS construction projects can be funded through a variety of routes, including capital allocations, public sector funding programmes and partnership-based delivery models. As well as being an approved supplier on a wide range of frameworks, MTX provides an alternative approach via our Managed Service model, enabling projects to be delivered through third-party funding without requiring significant upfront capital.

What is a Public-Private Partnership (PPP)? +

A Public-Private Partnership (PPP) is a collaborative arrangement in which public sector organisations work with private sector partners to fund, deliver and sometimes operate infrastructure projects. Public private partnership models are increasingly being explored as a way to accelerate investment in new NHS facilities and estate improvements.

Does MTX offer managed service models? +

Yes. MTX has developed a Managed Service NHS model that combines funding, design, construction and facilities management within a single solution. The model removes the need for upfront capital investment and provides a clear route from project conception through to asset ownership.

How can MTX help secure project funding? +

MTX works with specialist funding partners to facilitate healthcare project funding for NHS developments. Through our Managed Service NHS model, we can help Trusts bring forward projects without relying solely on traditional capital funding routes.

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