Ending the Blair/Brown short term mania for PFI Hospital Builds

There is a problem for managers and politicians wishing to end the Blair/Brown short term mania for PFI Hospital Builds. It costs to buy their way out…

The BMJ (BMJ 2014;349:g6060 ) reports: Hospital trust borrows £114m to end private financing deal 19 years early

An NHS trust in the north of England has become the first to borrow money to pay its way out of a private finance initiative (PFI) contract, and there are indications that more trusts may follow suit.

Northumbria Healthcare NHS Foundation Trust has borrowed £114m (€145m; $180m) from the local council to pay off the firm that built and ran Hexham General Hospital, which was opened by the former Labour prime minister Tony Blair …

Gill Plimmer and Sarah Neville report this important milestone to sanity in the Financial Times 1st October: NHS trust becomes first to buy out its PFI contract and Jim Armitage for the Independent in June reports: Northumbria NHS trust saves £67m by freeing itself from PFI deal 

Paul Baker for the BBC news 20th November 2010 reported: Questions raised over value for money of PFI hospitals

and Peterborough (7th June 2013 Peterborough City Hospital PFI cost threat to Trust), Sherwood Forest (2nd November 2012 Sherwood Forest NHS Trust reveals £1bn PFI overspend) and Norwich (Building UK. June 2012 MPs condemn PFI consortium at Norwich hospitalare all victims of the short termism which applied in the previous administration. Wales does not encourage PFI but it appears pressures have made the W.G. accept PFI.

Welsh Government renews PFI commitment

Welsh Government | Proposal to transfer the Private Finance

Even the Prince of Wales has been in on the act: Prince of Wales to be PFI hospitals design champion

 

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This entry was posted in A Personal View, Stories in the Media on by .

About Roger Burns - retired GP

I am a retired GP and medical educator. I have supported patient participation throughout my career, and my practice, St Thomas; Surgery, has had a longstanding and active Patient Participation Group (PPG). I support the idea of Community Health Councils, although I feel they should be funded at arms length from government. I have taught GP trainees for 30 years, and been a Programme Director for GP training in Pembrokeshire 20 years. I served on the Pembrokeshire LHG and LHB for a total of 10 years. I completed an MBA in 1996, and I along with most others, never had an exit interview from any job in the NHS! I completed an MBA in 1996, and was a runner up for the Adam Smith prize for economy and efficiency in government in that year. This was owing to a suggestion (St Thomas' Mutual) that practices had incentives for saving by being allowed to buy rationed out services in the following year.

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