At Community Health Partnerships (CHP), we are committed to providing high-quality healthcare environments that offer the best possible value for money for tenants and the NHS. Central to this commitment is our annual “true-up” process, a vital mechanism designed to ensure that the costs of occupying and running our buildings are transparent, fair, and accurate.
What is a “True-Up”?
In the complex world of property management, a “true-up” is, essentially, a reconciliation process.
At the start of each financial year, CHP provides tenants with an Annual Charging Schedule (ACS). This document outlines the estimated costs for services like utilities, maintenance, and facilities management (FM) based on the best available data at the time.
Once the financial year concludes, we perform a “true-up.” We look at the actual costs incurred by our tenants, this includes utility bills (electricity and gas), soft facilities management (cleaning, security and reception), service rates. We then compare them against the estimates paid by tenants throughout the year.
Why Does the True-Up Matter?
The true-up is about accountability and fairness. It ensures that:
- Tenants only pay for what they use: If the actual cost of running the building was lower than our initial estimate, the difference is returned to the tenant as a credit.
- Budget accuracy: For healthcare providers, every penny counts. This process ensures that NHS budgets are based on reality rather than projections.
- Industry standards: We align our processes with the RICS Service Charge Code, ensuring our financial management meets the highest professional standards in commercial property.
Will Every Tenant Receive a True-Up?
It is important to note that not everyone will receive an adjustment. Financial true-ups are calculated on a case-by-case basis. Whether an adjustment is made depends on several factors.
Our goal is not just to manage buildings, but to act as a responsible partner to the NHS. The true-up process is a key part of that partnership, providing the clarity our tenants need to manage their own finances effectively.
Our Ongoing Commitment to Cost Efficiency
While the true-up reconciles past spending, we are constantly looking forward. We understand the financial pressures facing our tenants and building users.
CHP is proactively seeking new ways to create cost efficiencies. This includes using improved billing accuracy and working closely with our facilities management partners to drive down operational costs without compromising the quality of the clinical environment.
CHP Tenant Hub
The hub covers information for CHP tenants on health and safety, sustainability, facilities management including HardFM, and SoftFM, leases, charges and billing.
In addition there is information on bookable rooms and filming at our premises.
