HOME >> MEDICINE >> NEWS
Private Finance Initiative may have had its day in the NHS

Government enthusiasm for the Private Finance Initiative (PFI) in the health service - private sector investment in hospital building projects - may be dropping because of its high cost, says an editorial in this week's BMJ.

Hospital trust boards initially welcomed the financing system, which they were told was the major way they could fund new facilities, paying investors back in annual instalments.

But concerns were soon raised that new PFI funded projects were providing less patient capacity than those they were designed to replace. PFI contracts also seemed very expensive, though details on costs were "shrouded in commercial secrecy", says the author.

The House of Commons Public Accounts Committee recently questioned the "large profits made by the private contractor which built the Norfolk and Norwich hospital", says the author. And the recent shelving of a flagship PFI venture in West London may herald the end for the PFI healthcare experiment in the UK, he suggests.

The fundamental problem is that PFI does not suit the rapidly changing climate of delivering healthcare in the UK, says the author, as private investors need long-term commitment from hospital managers commitments increasingly unwise for trust boards to make.

The final blow could be the Government's own economic operating constraint that debt should not exceed 40% of gross domestic product. Hospital repayments to PFI investors have always been treated as "off balance sheet" finance - not registered in public accounts. But this may soon change if the Government's Office for National Statistics reclassifies PFI investment, since much of it may be categorized as debt and at levels possibly breaching the Government's own economic condition, says the author.

This would remove a key justification for PFI in healthcare, since a financing system which incurred heavy debts on the Government balance sheet overturns the argument for having PFI in the NHS a
'"/>

Contact: Emma Dickinson
edickinson@bmj.com
44-20-7383-6529
BMJ-British Medical Journal
6-Oct-2005


Page: 1 2

Related medicine news :

1. SCHIP funding levels too low ACP tells Senate Finance Committee Leaders
2. NHLBI awards 12 Womens Health Initiative contracts
3. International AIDS Vaccine Initiative statement on male circumcision
4. International AIDS Vaccine Initiative calls for new measures to search for an AIDS vaccine
5. Painting a Clear Picture What Do The New Womens Health Initiative Findings Mean for Women?
6. RSVP: Telecon on Hurricane Katrina Survivor Initiative - Jan 5
7. US Surgeon Generals Family History Initiative

Post Your Comments:
*Name:
*Comment:
*Email:


(Date:9/3/2020)... ... September 03, 2020 , ... ... the American Foundation for Suicide Prevention’s (AFSP) annual signature event, Out of the ... hundreds of U.S. cities to raise awareness of suicide prevention. To ensure Associate ...
(Date:9/3/2020)... ... September 03, 2020 , ... ... 2021 will be held Wednesday, April 7, to Saturday, April 10, 2021, at ... Medical Spa Show is a national trade show for non-invasive medical aesthetic practices ...
(Date:9/3/2020)... ... 2020 , ... International Dark-Sky Association (IDA) recently bestowed the ... This advanced LED wireless dimming controller, along with the previously IDA approved Dimulator, ... against light pollution. Leo Smith, the Northeast Regional Director for IDA says “We ...
(Date:9/1/2020)... ... September 01, 2020 , ... Board certified plastic ... While the office will be the first to bear her name, Dr. Saber ... (Brazilian butt lift), as well as rhinoplasty, facial rejuvenation, and many more in ...
(Date:9/1/2020)... ... ... Feeding Matters , the first organization in the world dedicated to ... to announce that the U.S. Centers for Disease Control and Prevention (CDC) has officially ... of the U.S. International Classification of Diseases (ICD ) on October 1, 2021. ...
Breaking Medicine News(10 mins):
(Date:8/28/2020)... (PRWEB) , ... August 28, 2020 , ... ... operator of primary care medical centers in Florida and San Antonio is happy ... its South Texas medical centers. , In this capacity he will serve as ...
(Date:8/27/2020)... (PRWEB) , ... August 27, 2020 , ... ... coordination software, today announced the successful completion of their 2020 System and Organizational ... as their HITRUST® interim assessment and MARS-E compliance assessment. These achievements reflect their ...
(Date:8/27/2020)... ... , ... Bleep LLC, maker of the DreamPort mask-less CPAP solution, announced today ... spokesperson. , “In my line of work, a good night of sleep is critical ... was a Bleeping no brainer for me,” said Jensen. “From the moment I started ...
Breaking Medicine Technology:
Cached News: