The Harbour: 154 bed inpatient unit

Whyndyke, Blackpool

On the Fylde Coast, the Trust currently provides inpatient service for adults and older adults at Parkwood Hospital in Blackpool and Lytham Hospital.

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Pathfinders Drive, Lancaster: 18 bed inpatient unit

Pathfinders

The site on Pathfinders Drive in Lancaster is currently an inpatient unit for older adults with mental health problems.

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Children & Adolescent Mental Health Services (CAMHS)

Preston

During August 2011 the Trust requested that a design competition process be put in place with a selected site owned by the Trust used for this purpose.

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Red Rose modern mental healthcare facilities

Welcome to Red Rose Corporate Services (RRCS), the first joint venture partnership of its type in England. Lancashire Care NHS Foundation Trust and Ryhurst have formed, in RRCS, an independent company in which they are equal shareholders, with the aim of ensuring that the Trust has state of the art facilities to deliver modern mental health services in the future. Whilst the partnership’s role is primarily to design, build, finance and operate new inpatient facilities, it will also play a leading role in the delivery of the full spectrum of estates and associated support services needed by the Trust.
 
Red Rose Corporate Services has three principal objectives:

  • To provide high quality accommodation and facilities for Lancashire Care’s patients and staff
  • To fund the capital for and develop new inpatient accommodation
  • To deliver high quality operational estates management services

Redrose FAQs

What is Joint Venture Partnership (JVP)?

A JVP involves two or more parties pooling their resources and expertise to achieve a particular goal. The risks and rewards of the enterprise are also shared. There are a variety of JVP models but generally a JVP can provide:

  • More resources
  • Greater capacity
  • Increased technical expertise
  • Access to new markets
  • News solutions to financial and operational challenges

What is STEP?

Developed by Ryhurst Limited, a Service Targeted Estates Partnership (STEP) is a form of joint venture aimed at the health and social care market. Under the STEP model the care organisation and Ryhurst become shareholders in a new company that obtains the investment capital for planned improvements in health and social care facilities.   

The STEP Company will take responsibility for all capital works related activity and once service delivery has commenced it will manage and maintain this. On completion of the works, the care provider rents the space from the joint venture company. The STEP Company can be structured to deliver a range of services extending to whole estate management solutions on behalf of the care organisation.

Why is STEP different from PFI, Procure21+ or LIFT?

PFI usually involves the public sector securing a private sector partner to finance, design, construct and maintain a new or refurbished building for a specified period. A ‘Project Co’ Special Purpose Vehicle (SPV) is established specifically for the project and this receives a payment to cover the cost of the building and contracted services by means of a unitary charge. At the end of the contract period, the building is handed back to the care partner, who then assumes all property ownership risks. 

Procure21+ is a procurement method for publicly funded NHS capital schemes. An NHS Trust can select a principal supply chain partner from the Procure21+ framework without having to use the OJEU tender process. The costs of developing and funding the scheme are borne by the Trust, though with the comfort of a guaranteed maximum price. All risks of property ownership rest with the Trust from completion of the construction phase. 

NHS LIFT is a vehicle for improving primary care facilities. Having selected a private sector partner, the PCT, partner and Community Health Partnerships (on behalf of DH) form a new limited company. Known as a LIFT Co, this company owns and maintains the building and leases the premises to the PCT, GP’s, local authority social services, etc. for an agreed period, usually between 25 and 30 years. At the end of the lease the PCT has the option to acquire the building.

Unlike all of the above models, the STEP approach offers both a funding and procurement route for specific projects and an optional whole estate development and management solution. STEP offers a flexible route to risk transfer and an off balance sheet accounting position as well as the ability to tap new sources of capital, reduce revenue costs and meet current/future environmental and energy management targets. The care provider becomes a partner in developing an estate aligned with it service strategy, securing an equitable share in the risks and rewards of property ownership.

Does STEP require an exclusive relationship?

No. 

Ryhurst believes the care partner should always be free to decide whether or not it uses the STEP JV to procure new and/or improved premises. The care partner has the flexibility to choose the most appropriate and cost-effective method of procuring and financing each development or service. 

Indeed, it is precisely the perceived inflexibility of existing PPP models that has caused many care parties to avoid using them. Some existing funding routes such as PFI may be appropriate for care partners and Ryhurst will continue to fund and develop through this route if required.

How long is a typical STEP contract?

However long the care partner needs it to be.

As the care provider’s property partner, the STEP Company will exist as long as the care partner needs buildings from which to deliver services, and it chooses the STEP Company to provide and manage these. However, it is appreciated that there will be occasions where one, either, or both of the partners may wish to change or dispose of their shareholding in the STEP company and the partnership agreement will include mechanisms for this to be achieved without damaging the care partners services.

How is STEP funded? As indicated earlier, the Ryhurst STEP has been structured to allow the care partner to use its own funds to develop and/or improve facilities. However, where these funds are not available, the joint venture company would access capital in the commercial markets utilising mechanisms such as funding competitions to secure the most competitive funds.  

In securing funds, factors such as the length of the care partner’s lease, the covenant strength of the care partner and the residual value will determine what percentage of the development cost can be secured. Any shortfall in funds would be provided by the STEP company shareholders, and this shareholder capital could take the form of a mixture of cash, land or a mixture of the two. 

In meeting the associated lease costs the care partner will utilise budgets covering FM, energy, capital dividend payments, costs of borrowing etc. Taken together the sum of planned or current spending should allow cover of the lease costs and enable a return on investment.

How is STEP funded?

As indicated earlier, the Ryhurst STEP has been structured to allow the care partner to use its own funds to develop and/or improve facilities. However, where these funds are not available, the joint venture company would access capital in the commercial markets utilising mechanisms such as funding competitions to secure the most competitive funds.
In securing funds, factors such as the length of the care partner’s lease, the covenant strength of the care partner and the residual value will determine what percentage of the development cost can be secured. Any shortfall in funds would be provided by the STEP company shareholders, and this shareholder capital could take the form of a mixture of cash, land or a mixture of the two.
In meeting the associated lease costs the care partner will utilise budgets covering FM, energy, capital dividend payments, costs of borrowing etc. Taken together the sum of planned or current spending should allow cover of the lease costs and enable a return on investment.

Can all care bodies create a JVP?

NHS Foundation Trusts (FTs) can enter into a joint venture arrangement. Indeed Monitor encourages FTs to improve their estate and improve their revenue position by exploring alternative funding routes. PCTs and non FT Trusts will need Secretary of State approval, though the ‘Transforming Community Services: Enabling new patterns of provision’ document issued by the Department of Health in January 2009 confirms that joint venture solutions secure the desired estate is an approach the Secretary of State would be supportive of. Local authorities have the ability to explore infrastructure development and are increasingly using joint venture partnerships for regeneration and improvement. Charities are not subject to public sector procurement rules and can create joint venture agreements within their local governance rules.

What is OJEU?

OJEU stands for the Official Journal of the European Union. This is the publication in which all tenders from the public sector which are valued above a certain financial threshold according to EU legislation must be published.

The legislation covers organisations and projects that receive public money. Organisations such as Local Authorities, NHS Trusts, MOD, Central Government Departments and Educational Establishments are all covered by the legislation. 

This website provides a gateway for Suppliers who wish to search for new business opportunities sent directly from the OJEU and also lower value opportunities from a wide range of other sources throughout the UK and Ireland.

What is the Transforming Community Services (TCS) Programme?

TCS is key to the Quality Innovation, Productivity and Prevention (QIPP) agenda, which is crucial to achieving the efficiency savings set out in the White Paper, whilst continuing to innovate, deliver high quality and increase the focus on prevention and supported self care.

What is agile working?

Flexible working, employees not fixed to one location (this could include working from any Trust site, partner organisation or from home). Agile workers are able to pre-book desk space and IT equipment using an Office Booking System which is accessed via the Trust’s intranet. 

What is anchor working?

Employee is fixed at one location with own desk and equipment. Anchor workers are allocated a permanent desk which they are not required to book.

Red Rose Corporate Services LLP
Tinsmiths, Guild Park, Cumeragh Lane, Goosnargh, Preston

Company Number: OC359006 - Registered in England & Wales
Reg. Address: Sceptre Point, Sceptre Way, Walton Summit, Preston