Government will review NHS PFI schemes

A health minister has confirmed that the government is examining some private finance initiative (PFI) schemes involving NHS trusts, although he denied that there have been talks about injections of extra funding. "We are committed to creating stronger hospitals through foundation trusts," said health minister Simon Burns. "As part of this work we are examining some PFI schemes, but it is too early to know what the solutions might be, or what, if any support might be needed from the department. There have been no discussions between the Treasury and the Department for Health on specific proposals to provide extra funding for PFI hospitals." The Telegraph today reported that the government might have to bail out PFI hospitals. To become a foundation trust hospital, an NHS trust needs to meet strict requirements on the quality of clinical care they provide and on the state of their finances. The Financial Times along with the Telegraph reported that the review will be carried out by consultancy firm McKinsey. PFI deals have been heavily criticised for leaving trusts with huge repayment bills. Last August the Department of Health said that the NHS faces a £65bn PFI repayment bill, six times the original total value of the buildings covered . The nature of the scheme means that private companies fund the initial building of hospitals and other health service units, often also providing maintenance services, with NHS trusts paying for the facilities over a number of years or decades. This article is published by Guardian Professional. Join the Guardian Healthcare Network to receive regular emails on NHS innovation.