Public Expenditure on Health and Personal Social Services 2009 - Health Committee Contents


2.  CAPITAL EXPENDITURE

2.1.13  Can the Department name and list the value of any projects that it has been decided in the past year will no longer proceed under PFI? Does the Department envisage further reductions in the PFI hospital building programme in future? (Q18)

Answer

  1.In last year's evidence (HC 1190, Ev 37), the Department reported on a further five schemes with a total capital cost of just over £1 billion which had been cancelled as a result of local decisions having been taken using the same parameters established by the central Departmental PFI review on which the Department has reported since its inception in 2006. This is to ensure all PFI schemes in development properly take account of the reforms to the NHS such as choice, PbR and moving services out of hospital into primary care and community settings.

2.  Since last year a further three schemes have been cancelled as a result of further local reviews, totalling almost £500 million:

    — Barnet and Chase Farm (£40 million);

    — North West London Hospitals—Northwick Park (£305 million); and

    — Hillingdon Hospital (£139 million).

  3.  Two other schemes are also being taken forward now using alternative procurement routes:

    — Mersey Care (£135 million)—being developed as an NHS LIFT scheme; and

    — Northumberland, Tyne and Wear (£50 million)—using public capital.

  4.  There are nine projects which continue to be taken forward as PFI schemes, shown in the table 18. As with all the previous schemes cancelled or re-scoped over the last two years, decisions on their future will be for the local NHS bodies.

Table 18

PFI SCHEMES BEING TAKEN FORWARD


Scheme
Capital value
(£ million)
Status

North Bristol
419
Appointment of PFI preferred bidder case with DH for approval
Southampton
61
Outline Business Case (OBC) with DH for approval
Papworth
125
OBC with DH for approval
Sandwell & West Birmingham
484
OBC approved by DH and Treasury July 2009
Royal Liverpool & Broadgreen
477
OBC with DH for approval
Alder Hey Children's
235
OBC expected shortly
West Hertfordshire
350
OBC next year
East & North Hertfordshire
97
OBC next year
Royal National Orthopaedic Hospital
143
OBC next year
Total
2,391
  

Source:
Capital Investment, DH.





 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2010
Prepared 20 January 2010