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How we can get stop the waste of PFI in our NHS.
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The waste on PFI is scandalous, but we can stop it 

With your support our latest research confirms that many NHS trusts have been saddled with expensive PFI deals. The cost of the Private Finance Initiative is rising and sucking funding away from patient care. Set up through the private sector to build hospitals, NHS trusts are being dragged into debt, whilst private investors are making substantial profits, but what can we do about it? 
 
The report, aimed at the public and policy makers, explores the options and it has already influenced the candidates in the London Mayoral election and the Labour leadership contest. We are working alongside other campaigners to inform the public and raise the pressure for change.

What's the cost?

Billions will be wasted, in London alone we calculate this to be £2.7bn more than the cost of public borrowing. On average the schemes in London could have borrowed 1.5 times more capital if they had been financed through public lending. For an individual scheme like Barts this could amount to an overpayment of between £600-900m.

The size of this waste has a big impact on services and the care that can be given to patients. PFI has already contributed to the collapse of the South London Healthcare Trust, but PFI is also linked to the proposed closures of A&E units across the country.

PFI is costing NHS trusts Â£2bn year but this is not shared evenly, For some NHS trusts, PFI takes up 10-15% of the operating budget, but all must cope with PFI payments that rise year on year. In 2013 the government gave seven NHS trusts access to a £1.5 PFI bail out fund, but very little has been done to reduce the burden of these debts.

What can we do?

As you might do with a bad mortgage deal, we are calling for a public task force to explore the options to get better value for all PFI trusts. There are a number of options, but negotiating down the costs, and the buying out of expensive deals, have already been shown to achieve big savings.

In August 2012, Northumbria Healthcare Trust borrowed £120m from the local council to enable it to buy its way out of its PFI contracts for Hexham general hospital and Wansbeck general hospital, calculating that it would save about £85m.

Sadiq Kahn, a candidate in the London Mayor race, has supported the proposals in our report and suggested that the Mayor could use public bonds to help London's hospitals out of their PFI deals.

Finding the way out from PFI will not be easy, However there are options and exploring them is a crucial step in securing the future of NHS services.

LATEST STORIES

'Labour has duty to resolve 'mess' of hospital PFI deals'
Labour leadership frontrunner, Jeremy Corbyn, claims NHS is paying price for ‘City con-trick’ implemented by New Labour and says indebted hospitals should be bailed out.

Protest over £28m privatisation of NHS Children's services
Campaigners mounted a protest after it was revealed Sir Richard Branson's Virgin Care could take over an NHS service in Bristol and South Gloucestershire. More than 6,200 people have already signed a petition against the privatisation of children care in Bristol and South Gloucestershire.

'NHS competition could waste millions'
Andrew Gwynne, the shadow health minister, said the new competition rules could force the NHS to waste millions on competition lawyers, after Care UK demanded an investigation into the decision by GPs to remove its elective care contract and award it to local NHS health trust.

Cancer Drugs Face Axe In NHS Cost-Cutting Move
Charities warn the cuts - the second round this year - will deny patients access to life-extending treatment.
OUR LATEST CAMPAIGNS AND INVESTIGATIONS

What's happening to our ambulance services? Read our report with data about your local services.

Who are the new healthcare private providers? Read our company profiles.  

What's the evidence on NHS outsourcing? Our latest study shows the trends over the last five years.

Tell us what's happening in your area – live online summary coming soon.

THANK YOU FOR YOUR SUPPORT

Please consider making a donation to help us continue investigating the full impact of the government's NHS policies.

Copyright © 2015 NHS Support Federation, All rights reserved.


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