PFI hospitals get approval at last

james.atkinson@rbi.co.uk

The Department of Health (DH) has given the green light to seven major PFI hospital schemes worth a total of £1.5bn, but only one scheme has not already been tendered leaving precious few new pickings for PFI healthcare bidders.

Five of the schemes already have preferred bidders, while one is at the shortlist stage. Only the £310m Bristol North and South Gloucester PCT's project has not yet been advertised.

One PFI funder said: "There is no cause to celebrate yet as there are not enough new projects to keep people in business. They are turning their attention elsewhere."

The DH is running the rule over all major PFI hospital schemes to review whether they are now locally affordable following a government change in policy. The new policy is moving the emphasis away from large, centralised healthcare provision towards local and community facilities.

The review is designed to test whether the schemes are configured in the most financially cost-effective way possible and to ascertain whether they are financially sustainable over the long term.

The seven latest schemes can now move forward to the next formal approval stage. The first new hospital buildings are expected to open from 2008.

The move follows the approval of six schemes back in August 2006, most of which suffered cuts to their original proposals. The DH said the fate of the remaining schemes under review would be announced in the autumn.

PFI hospital schemes given go-ahead

Bristol North and South Gloucester PCTs: £310m - not yet advertised

Tees and North East Yorkshire NHS Trust: £78m - shortlist of three

Peterborough Hospitals NHS Trust: £282m - preferred bidder, Multiplex

Maidstone and Tunbridge Wells NHS Trust: £225m - preferred bidder, John Laing

Mid Yorkshire NHS Hospitals Trust: £343m - preferred bidder, Balfour Beattye_SClB Mid Essex Hospital Services NHS Trust: £143m - preferred bidder, Balfour Beatty

North Middlesex University Hospital NHS Trust: £111m - preferred bidder, Bouygues