Anger as PFI contractor cuts power to hospital

20 Apr 12
Private Finance Initiative contracts are under renewed fire in Scotland after the consortium that services Edinburgh’s biggest NHS hospital cut power supplies, forcing surgeons to complete an operation by torchlight.
By Keith Aitken in Edinburgh | 20 April 2012

Private Finance Initiative contracts are under renewed fire in Scotland after the consortium that services Edinburgh’s biggest NHS hospital cut power supplies, forcing surgeons to complete an operation by torchlight.

It was the latest in a series of incidents involving Consort Healthcare, which built and operates Edinburgh Royal Infirmary under a £1.26bn PFI deal, the biggest in Europe when it was signed in 1996. Past issues include failure of back-up systems during power cuts, lax security provision, non-functioning smoke alarms and high parking charges for staff and public.

Health Secretary Nicola Sturgeon, whose Scottish National Party has long campaigned against PFI contracts, welcomed news that NHS Lothian was consulting its lawyers over possible action against Consort. She bluntly told the contractor that it needed ‘to get its act together’.

She urged NHS Lothian to look at all its options, but admitted: ‘These contracts are incredibly restrictive and cost the NHS a considerable amount of money, [but] getting out of [them] would cost much more.’

Under the 25-year contract, which has 16 years left to run, NHS Lothian pays Consort £60m a year to manage ERI. At the end of the existing contract it can decide whether to negotiate an extension for a further 25 years. Failure to do so could mean having to build a new hospital, since Consort also has a 130-year lease on the land.

The health authority has previously taken punitive action against Consort over operational failure, although the terms of the contract leave only modest scope for doing so in comparison with the value of the contract. A previous penalty when power was cut off to the maternity unit cost Consort just £100,000.

Consort said it was taking this latest episode ‘very seriously’ and had launched an inquiry, but there was criticism from across the political spectrum. Sturgeon’s Labour shadow, Jackie Baillie, demanded an independent inquiry, and her Tory counterpart, Jackson Carlaw, said he would be ‘comfortable’ if the episode led to a fine.

Margaret Watt, chair of the Scottish Patients’ Association, welcomed fresh scrutiny of Consort’s position at ERI, declaring: ‘It should be one strike and you’re out.’

Tom Waterson, Lothian chair of trade union Unison, added that it would be ‘a fantastic move’ if Lothian NHS were to find a way to part company with Consort.

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