North West Region

Danger of new Hospital PFI scheme warning

Danger of new Hospital PFI scheme warning

A report pointing out that the new private finance model for NHS hospitals will cause even more debt than the existing system should sound loud warning bells, said UKIP Health spokesman Louise Bours MEP.

“We all know the NHS is in dire financial straits and staggers from one dubious decision to another in terms of strategy and budget cuts.

“This report by the independent think tank Centre for Health and the Public Interest  makes worrying reading and must not be brushed under the carpet,” said Ms Bours, North West MEP.

It says that the higher cost of borrowing means that the move will ultimately be more expensive for NHS Trusts – but meanwhile private investors can expect a 15 per cent higher rate of return than under the old system at current market conditions.

The new private finance projects (PF2) must be structured on a basis of 20-25 per cent equity and 75-80 per cent debt, compared to the 10 per cent equity and 90 per cent debt that was the norm for PFI hospitals. Of that equity investment, the Government will hold between 25-49 per cent making it a minority investor and taking on the both the risk and profit of its new PF2 role.

“NHS Trusts are already financially crippled by PFI’s and this new model is said to be worse for them and leave the finances of the health service exposed to greater risk.

“The Department of Health has admitted previous PFI schemes were ‘overambitious, expensive and did not deliver for patients’ and I am very concerned that the new model is going to make matters worse not better,” said Ms Bours.

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Louise Bours MEP has her own website: http://www.louiseboursmep.co.uk/

UKIP ANNUAL CONFERENCE DONCASTER 2014‚Äã

 

 

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