Batched PFI health deal decimated by late cuts

The government's flagship Northern batched PFI hospitals scheme is in further crisis this week after Bradford Teaching Hospital NHS Trust slashed £177m off its £227m scheme.
The news comes just two weeks before negotiations are to be opened with the three shortlisted bidders, Catalyst (Bovis), Consort (Balfour Beatty) and Equion.
The Trust told CJ this week that the cuts are a result of plans to make Bradford Hospitals an NHS Foundation Trust and recent changes in healthcare provision. A spokesman said: "Becoming a Foundation Trust brings some changes to the way we develop schemes. At the same time our Primary Care Trusts are increasingly involved in providing healthcare. For instance, we will soon have an independent sector treatment centre at Eccleshill. All this combined has led us to review our original thinking on batching."
The value of the Bradford Royal Hospital and St Luke's Hospital scheme is now expected to be less than £50m.
Bradford's decision is yet another body blow to the beleaguered project, which last year was delayed by six months after the Greater Manchester Strategic Health Authority ran the rule over the other two schemes in the batch - the £173m Salford Hospitals scheme, cut to £169m, and the £85m Thameside Hospitals scheme, reduced to £70m.
Sources close to the consortia expressed frustration. One said: "The centre has tried to speed up the process, but has not had the foresight to consider the impact of these forces for change or fully consult the Trusts. The private sector is left to pick up the cost of all that wasted time and effort."
Another source said: "Batching only works if it is a happy marriage, not a shotgun wedding. The Shires batch is an example of the former and the Northern batch, sadly, is an example of the latter."
Salford Hospitals project director Simon Neville said: "All three schemes have reviewed their business case and reduced their initial scope. Hopefully all three are more robust as a result.
"In Bradford's case, as a Foundation Trust it will have a different approach to capital investment, so it has looked at what elements of the scheme are best provided under the Foundation Trust or as part of the batch. As a consequence, the bit remaining in the batch will be significantly smaller."
Invitations to negotiate will be issued to all three bidders on 6 April.