Which hospitals are spending more of their budget on PFI?

The Peterborough City Hospital was built under a Private Finance Initiative contract. Over the course of the 33-year scheme, the Trust is expected to pay back £2bn in charges.
The Peterborough City Hospital was built under a Private Finance Initiative contract. Over the course of the 33-year scheme, the Trust is expected to pay back £2bn in charges. Credit: Davecrosby uk / Wikimedia Commons

Peterborough and Stamford Hospitals is the NHS Trust that spent the highest percentage (18%) of its annual income on Private Finance Initiative (PFI) charges last year.

The trust has found itself in a dire financial situation in recent times.

It has been left struggling with a £37 million annual deficit after using PFI to build the new Peterborough Hospital.

The 611-bed facility opened in November 2010 at an initial cost of £289 million. However, by the end of the 33-year life of the scheme, its total cost is expected to rise to £2bn.

As a National Audit Office (NAO) report noted, “the trust board had failed to recognise that the scheme would place considerable strains on the trust’s finances for many years to come”.

Continue reading Which hospitals are spending more of their budget on PFI?