Member Article

PFIs put NHS trusts at risk

Paying for hospitals through Private Finance Initiatives is putting some healthcare trusts at risk.

The BBC reports that 22 trusts are facing billions of pound of costs due to the PFI agreements, which allow the NHS to pay an annual fee over several years to replace old buildings.

However, this is putting massive pressure on the healthcare system.

Bills are forecast to rise by 75% in the next 18 years due to inflation, meaning that by the time the scheme is paid off in 2049, £70 billion will have been paid by the NHS.

The Heath Secretary believes that some hospitals “simply cannot afford” to pay back the PFI deals, and accused Labour of bringing some parts of the NHS “to the brink of financial collapse”.

Some in government believe that the repayments could be reduced, while others are calling for a renegotiation of deals. However, this could be a dangerous situation for the NHS, as lenders feel that the treasury will bail out those in difficulty anyway.

There are also concerns that the reorganisation of the health service has complicated matters, and incomes to pay back the cost of PFIs are becoming increasingly unstable.

This was posted in Bdaily's Members' News section by Ruth Mitchell .