Another blow hits PFI

United Healthcare - the Taylor Woodrow and Healthcare Group partnership - has pulled out of the bidding for the œ55 million new PFI hospital project in Dartford, Kent.

The move is yet another blow to the viability of the Private Finance Initiative in the healthcare sector, following the withdrawal of other contractors from several other major schemes.

United Healthcare's withdrawal effectively hands the project on a plate to Tarmac's Pentland Healthcare group, which is the only other consortium left in the bidding. Bids by Trafalgar House and Costain were ruled out earlier.

A spokesman for Taylor Woodrow said: "We were not prepared to commit more time and effort and a not inconsiderable amount of money to the project whilst still in competition. There are other reasons for withdrawing, but these are of a commercially sensitive nature. We are very much committed to PFI and the healthcare sector, but we will judge each project on its merits."

Final bids for the scheme were due to be returned to the Dartford and Gravesham NHS Trust by Monday 1 July.

Privately, some contractors bidding for PFI healthcare schemes have expressed concern over the amount of work and information some Trusts are expecting them to provide at relatively early stages of the bidding.