02 March 2007
Public services union Unison has attacked the government's decision to approve seven new Private Finance Initiative hospitals with a capital value of £1.5bn.
The go-ahead for the schemes on February 26 followed a Department of Health moratorium on PFI projects because of concerns that NHS trusts should not over-commit themselves in the new uncertain era of competition and Patient Choice.
However, the seven schemes – in Kent, Bristol, Gloucester, Teesside, Mid-Yorkshire, Middlesex and Essex – will be reduced in scope by about 15%. A further 23 schemes are still waiting DoH approval.
Health Secretary Patricia Hewitt said the move proved that the government was 'opening hospitals, not closing them'. She added: 'Finding a way forward for each of these seven new hospital schemes is great news for patients in all of these areas.'
Four of the seven hospital trusts – Mid-Yorkshire, North Bristol, South Tees and North Middlesex – were highlighted as political trouble spots in DoH 'heat maps' leaked to the press last summer.
But Unison said using the PFI to build new hospitals could cost the taxpayer three times as much in the long run. The Treasury had already confirmed that the £42bn worth of PFI schemes signed to date would eventually cost in the region of £135bn, once all the unitary payments had been added up, it said.
Karen Jennings, Unison's head of health, said: 'Accountants, management consultants, lawyers and shareholders have all had rich pickings out of the PFI. Already the extra cost [above conventional procurement] for the first wave of PFI of 18 signed hospitals is almost £0.5bn every year. The fallout for some hospitals has been devastating, creating massive deficits.'
PFmar2007
