The UK Chancellor, Rachel Reeves, delivered her second Budget on November 26. One of the big health-related announcements was that the government plans to open up to 250 ‘Neighbourhood Health Centres’ across England, with 120 of these expected to be ready by 2030.

These centres will put a range of healthcare services under one roof, including GPs, nurses, dentists, pharmacies, diagnostics, physiotherapy, mental health support, and rehab services. The aim is to make healthcare easier to access, ease the pressure on hospitals, and provide better support to patients with long-term or complex conditions. 

Early sites are already planned in Birmingham, Truro, Southport, Barrow-in-Furness, and Ealing. These centres will be a mix of refurbished buildings and new construction, funded through a combination of public money and public-private partnerships (PPPs). 

The UK has used PPPs in its health system before for new infrastructure projects, but paused them in 2018 after concerns they were too rigid and expensive.

From my conversations with industry experts on PPPs, it’s clear that opinion is split on these new centres. Some see them as a smart way to bring in private expertise and funding while keeping public oversight. Others worry we might repeat past mistakes, with inflexible contracts, high long-term costs, and limited control under the public sector.

I am cautiously hopeful. The NHS 10-year plan shows they are trying to learn from the past. Private Finance Initiatives (PFIs) did deliver hospitals quickly and on budget, but the long-term costs were very high. A modern PPP could help deal with the NHS’s chronic underinvestment, but only if it is done properly, with transparency, shared decision-making, clear responsibilities, performance-based payments, and strong public oversight.

That said, the NHS’s 10-year plan still doesn’t clearly address its most run-down hospitals, leaving a huge capital gap. In the past, healthcare development could be funded through leasing, PPPs, or the capital budget. Since PPPs ended and leasing rules tightened, the NHS capital budget had to cover all three roles. 

So the Neighbourhood Health Centres are good news, but for them to succeed, a few things are essential. There needs to be a steady flow of projects for private investors, well-resourced public bodies like NHS trusts or integrated care boards (ICBs) to handle complex deals, and rules that balance efficiency, public value, and long-term flexibility.

There is also huge potential in technology. Better digital infrastructure, including the idea of an ‘online hospital’, could make patient care more accessible. But the success of the health centres hinges entirely on how the partnerships are structured. The success also depends on smarter procurement, and stronger collaboration with life sciences and medtech companies.

HBI has just released a Special Report on Digital Health, and the message is clear: going digital and using AI is now essential for improving healthcare. Healthcare providers need to rethink their business models to stay relevant.

In our view, the best partnerships improve patient outcomes. That is always the starting point. Those investing in healthcare understand that partnership is essential for improving patients’ health and wellbeing while driving efficiency, value, and innovation to meet complex challenges.

Long-term partnerships like PPPs, built on shared goals and trust, are important for large-scale infrastructure and service projects. This is one of the key themes we will be exploring at HBI 2026, March 23-25 at CNIT Forest in Paris.