Hospitals 'Face Collapse' Over Costly Pfi Schemes

Summary

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More than 60 hospitals cannot afford the rising cost of private finance initiative schemes and are being left "on the brink of financial collapse", according to the Health Secretary.

Andrew Lansley said he has been contacted by 22 NHS trusts which claim their "clinical and financial stability" is at risk because of the spiralling cost of PFI contracts. Under the schemes, which were expanded by the previous Labour government, private capital is used to fund public infrastructure projects such as schools and hospitals. The public sector body then repays the private firm with interest over an agreed time period and, in some cases, covers the costs of maintaining the buildings.

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Hospitals 'Face Collapse' Over Costly Pfi Schemes

However, the trusts say they are now unable to pay for their schemes - believed to be worth more than Pounds 5.4 billion in t...

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