Select Committee on Health Memoranda


Memorandum by the Department of Health (Continued)

  4.8h  Could the Department list, by scheme, how much has been spent on developing business cases for a sample of schemes worth over £1 million, identifying which schemes are publicly financed and which financed through the PFI? Where schemes have reached completion, could the estimated development costs be compared with actual costs?

  21.  The actual development costs are shown in the attached tables. These are the costs at financial close. These represent a sample of PFI schemes which financial close last year and the two biggest Public Schemes which opened this year.

Table 4-8-6

DEVELOPMENT COSTS


  4.8i  Could the Department detail for every NHS trust with a hospital development, whether publicly or privately financed, worth over £25 m (i) the number of NHS beds—general and acute—currently provided by the trust and (ii) the number of NHS beds—general and acute—to be provided when the development is completed?

  22.  Table 4.8.7(a) shows bed numbers for all major schemes which have reached financial close at July 2000 (this table was submitted to the Committee earlier this year and has "final and definitive" figures for these schemes following discussions on bed numbers at last year's hearing).

  23.  Table 4.8.7(b) shows major PFI schemes that reached financial close since July 2000.

  24.  Table 4.8.7(c) Because figures for the PFI solutions may change for schemes during the procurement period, information this year is provided only for those schemes where the PFI bed numbers are final and confirmed ie: for those with preferred bidders and nearing contract signature.

  25.  Table 4.8.7(d) shows major publicly funded schemes which have become operational since July 2000.

  26.  The 29 new schemes announced in February this year were the first major schemes to be fully planned from the start after the NBI report and NHS plan. As such they are explicitly required to consider in their OBC a "whole health economy approach" with one private sector consortium responsible for developments across the acute, intermediate and primary care sectors. Taken together, the 29 schemes are planned to increase NHS beds by 2,900. These will be increases in both acute and intermediate care beds, contributing to the targets in the NHS Plan.

Table 4-8-7(a)




Table 4.8.7(b)




Table 4.8.7(C)




Table 4.8.7(d)




  4.8j  For each PFI scheme could the Department provide the estimates of the unitary fee and split between the availability and facilities management fee at outline business case (baseline year) and the actual cost of the unitary fee split as above on signing off the FBC? Could the Department comment on how any increases were funded?

  27.  The response to this question is provided with the response to 4.8c

  4.8k  For each PFI scheme signed or given approval in principle, could the Department provide income and capital charges of Trusts which make up each PFI scheme prior to signing and income, availability fee and capital charges on retained estate for each scheme having signed, or estimates for those schemes which have not yet signed?

  28.  Tables 4.8.8 show all NHS trusts with a PFI scheme above £10m that has reached Financial Close.

  29.  Column A shows the income, depreciation and PDC Dividends shown in the audited annual accounts for 1999-2000. The interest is interest paid on Government debt in 1999-2000.

  30.  Column B shows the income, depreciation, PDC dividends and unitary payment expected to be charged to the income and expenditure account in the first full year in which the PFI scheme is operational.

  31.  Information has not been provided in schemes that are yet to reach financial close. There are only broad indications of the likely level of the unitary payment. PDC dividends have been used as a proxy for the 6 per cent return.

Table 4.8.8




Table 4.8.8




Table 4.8.8




Table 4.8.8




Table 4.8.8




Table 4.8.8




4.9  Capital investment in primary care.

  4.9a  Could the Department please provide data on all grants, public loans and capital receipts used to fund or finance primary care facilities since 1997. Data should be provided on an annual basis from 1997 and by health authority.

  4.9b  Could the Department please provide a list of primary care premises which have signed or in the process of signing up for the use of PFI, together with their total capital cost, the length of contract, the annual unitary charge and availability fee and FM fee. Where projects are bundled with non-NHS facilities, could they also provide details of the other income streams eg from commercial and retail, local authority.

  4.9c  Could the Department please provide a full account of the revenue implications of using private finance for all primary care schemes annually for the next ten years.

  4.9d  Could the Department please provide an account of all loans outstanding on primary care premises and the ownership of these premises.

  4.9e  Could the Department please provide a list of the top twenty companies involved in primary care PPPs, together with the value of their asset base, their turnover and profits, the value of NHS contracts signed, the loans outstanding and the NHS revenue streams.

  4.9f  Could the Department please provide an account of the value of NHS primary care facilities, the total value of primary care estate and the backlog in maintenance and repairs on primary care facilities.

  4.9a  Could the Department please provide data on all grants, public loans and capital receipts used to fund or finance primary care facilities since 1997. Data should be provided on an annual basis from 1997 and by health authority.

  1.  Information is not available by Health Authority

Transfer of HCHS capital for Revenue Allocations for 1996-97 to 2001-02


  
£m

1996-97
24
1997-98
25
1998-99
26
1999-00
26
2000-01
27
2001-02
N/A

  4.9b  Could the Department please provide a list of primary care premises which have signed or in the process of signing up for the use of PFI, together with their total capital cost, the length of contract, the annual unitary charge and availability fee and FM fee. Where projects are bundled with non-NHS facilities, could they also provide details of the other income streams eg from commercial and retail, local authority.

  2.  PFI is not currently used for the provision of primary care premises in the NHS.

  4.9c  Could the Department please provide a full account of the revenue implications of using private finance for all primary care schemes annually for the next ten years.

  3.  All current support takes place under existing rental reimbursement schemes (eg notional, actual); information on the costs and trends is given in the answer to question 4.3c.

  4.  The revenue costs and future revenue implications of NHS LIFT schemes can be provided in future years to the Health Select Committee when contracts have been signed under this initiative.

  4.9d  Could the Department please provide an account of all loans outstanding on primary care premises and the ownership of these premises.

  5.  The answer to this is the same as to question 4.3f. The vast majority of premises are funded through private capital borrowed from a range of specialist and high street financial institutions and banks. Details of outstanding loans are considered commercially sensitive and are not available.

  6.  In addition, NHS LIFT is a new initiative for which contracts have yet to be signed.

  4.9e  Could the Department please provide a list of the top twenty companies involved in primary care PPPs, together with the value of their asset base, their turnover and profits, the value of NHS contracts signed, the loans outstanding and the NHS revenue streams.

  7.  As stated in the answer to question 4.3g, a list of companies is not yet feasible in this maturing sector of the GP estate.

  4.9f  Could the Department please provide an account of the value of NHS primary care facilities, the total value of primary care estate and the backlog in maintenance and repairs on primary care facilities.

  8.  Please see the answer to questions 4.3d and 4.3e and the attached pie charts.

4.10  Family Health Services Expenditure on Prescribing

  4.10a  Could the Department provide information on total NHS expenditure on pharmaceuticals, including a breakdown by sector and by generic/branded drugs? Could the Department please state what data are available on pharmaceuticals in the non primary care sector, and how they are monitoring drug spending and cost pressures in the acute hospital and community sectors?

  4.10b  Could the Department provide information on (i) total Family Health Services expenditure on prescribing for each year from 1992-93 to 2000-01, (ii) the average expenditure per capita, (iii) the total number of items prescribed and average number per capita, and (iv) the average cost per prescription? Any commentary which the Department would wish to append would be welcome, including an assessment of progress in meeting its stated target of restraining the growth in the drugs bill to sustainable and affordable limits?

  4.10c  Could the Department explain the measures being taken to control NHS expenditure on generic drugs in primary care following the price increases in 1999-2000?

  4.10d  What progress has been made in getting the pharmaceutical industry to reduce drug costs by 4.5 per cent (as agreed in the PPRS)? Could the Department comment on issues such as volume, price and substitution? Has the lack of reliable data to monitor spending led to a breakdown in cost control?

  4.10a  Could the Department provide information on total NHS expenditure on pharmaceuticals, including a breakdown by sector and by generic/branded drugs? Could the Department please state what data are available on pharmaceuticals in the non primary care sector, and how they are monitoring drug spending and cost pressures in the acute hospital and community sectors?

  1.  Total NHS net expenditure on medicines and listed appliances in England in 2000-01 was £6,647m. £5,161m of this total relates to prescriptions dispensed in the community and £1,486m [DN This figure is provisional as approximately 30 NHS trusts, 3 HAs and 4 PCTs that have not yet sent in their financial returns and therefore are not included in this figure] relates to medicines supplied in a secondary care setting.

  2.  For prescriptions dispensed in the community in England, a breakdown between branded medicines, generic medicines, dressings and listed appliances for the financial years 1992-93 to 2000-01 is provided in table 4.10.1. The table shows both the cost (expressed in terms of net ingredient cost) and the volume (number of prescription items) for each category. In 2000-01, branded drugs prescribed represent about 76 per cent of the total net ingredient cost (inc the cost of dressings and appliances). In 2000-01, the share of prescription items written generically was 72 per cent, and the share of prescription items dispensed generically was 52 per cent.


 
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