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Harper Macleod advises on £12 million takeover of Community Hospital

Harper Macleod has advised NHS Ayrshire & Arran on the £12 million acquisition of East Ayrshire Community Hospital (EACH).

The hospital had originally been procured through one of the first PFI health contracts in Scotland.

The firm advised the health board on all aspects of its acquisition of the holding company of Cumnock SPV Limited, the company that has owned and operated EACH since August 2000. The acquisition of the company, including all its building assets, from Dutch Company BAM PPP has been fully funded by the Scottish Government and has allowed the ownership of the facility and property interests to be secured in advance of the end of the existing PFI contract in August 2025.

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Euan Pirie, Partner and head of the Infrastructure and Projects team at Harper Macleod, said: “We are delighted to have worked on this unique transaction which is of great strategic importance to NHS Ayrshire & Arran in terms of its Caring for Ayrshire Programme and goals of providing health care in the community.”

Health Secretary Humza Yousaf said: “Community hospitals enable many patients to receive the vital care they need closer to home, so I’m pleased this investment of £12m from the Scottish Government secures the future of this hospital for the people of East Ayrshire.

“As we remobilise and implement our NHS Recovery Plan, we want to see as much health care as possible provided in the community. The important role centres like East Ayrshire Community Hospital have in delivering that will only increase as we invest £10 billion over the next decade to replace and refurbish health facilities across Scotland.”

John Burns, Chief Executive, said: “East Ayrshire Community Hospital has been central to the provision of health services to the citizens of East Ayrshire since it opened in 2000. This acquisition give us a tremendous opportunity to further develop long term health services to best meet the needs of those living in East Ayrshire.”

The facilities management services will continue to be delivered by the current provider, BAM FM, until the end of the concession in 2025 and therefore there are no employee changes at the site.