The Department of Health and Social Care repaid £42m to investors of a failed PFI scheme three months before it emerged the fee was not required, according to auditors.
A much-vaunted scheme to use private investment for NHS capital projects has been officially scrapped, HSJ has learned.
Heavily-indebted NHS providers are bidding to restructure their loans with the Department of Health and Social Care, albeit with little prospect of them being written off.
The new prime minister has made “hospital upgrades” a focus in his first speech as prime minister and ”ensuring the money for the NHS really does get the frontline”.
The chair of NHS England has called on politicians to back a £50bn government “bond” for infrastructure spending, saying the service is “capital starved”.
NHS trusts have been told they are asking for too much capital funding and to scale back their ambitions for next year.
The government has launched a review of private financing options for public infrastructure and said it will no longer procure PFI-type projects that are “off-balance sheet”.
A major London trust had to cancel hundreds of MRI scans after ageing equipment stopped working, causing it to miss its two-week diagnostic target for the first time in 14 months.
An acute trust is hoping to be among the first organisations to use a new form of private financing to help fund a replacement hospital.
Two out of three requests from NHS trusts for capital investment have so far been rejected under the government’s new funding regime, analysis by HSJ suggests.
The government needs to set out what will replace the private finance initiative and the £3bn of capital it was expected to raise, the chief executive of NHS Improvement has said.
Increasing the share of the NHS budget spent on primary and community “can’t wait” and should begin next year, health secretary Matt Hancock has told HSJ.
The government plans to abolish the use of private finance initiative deals for future capital projects, and establish a “centre of best practice” to manage its existing deals.
Construction of a new acute hospital is set to resume almost a year after Carillion was liquidated, following a deal between the government, lenders, and local NHS chiefs.
The NHS has been warned of “crippling” finance charges from its PFI contracts over the next decade, when aggregate repayments on the deals will reach their peak.
The drive to centralise how the NHS buys products will not necessarily mean reducing the number of suppliers, according to a procurement leader.