View all newsletters
Sign up to our newsletters

Support 110 years of independent journalism.

  1. Politics
26 June 2012

Live near one of these hospitals? Try not to get ill soon.

Almost 60 hospitals could close due to PFI-related debts

By Alex Hern

View PCTs in Trouble in a larger map

South London Hospital Trust has been effectively declared bust, and the Department of Health has laid the blame at the feet of the “unaffordable” private finance initiatives started by Major’s Conservative government but massively expanded by New Labour.

Once the last scheme Labour started is fully paid off, in 2049, more than £70bn will have been paid back. For the NHS as a whole, the repayments are relatively low – just £1-2bn a year from an annual budget of £100+bn. But for some individual trusts, they can reach 10 to 20 per cent of their entire annual turnover.

Now that the Department of Health seems to have moved to a policy of not bailing out these hospitals, they are all at risk of following South London Heathcare.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

In September last year, the Department released a list of the 22 trusts “on the brink of financial collapse” because of PFI deals they can’t afford:

St Helens and Knowsley

South London Healthcare

University Hospitals Coventry and Warwickshire

Wye Valley

Barking, Havering and Redbridge

Worcester

Oxford Radcliffe/Nuffield Orthopaedic Centre

Barts and the London

University Hospitals of North Staffordshire

Dartford and Gravesham

North Cumbria

Portsmouth

Buckinghamshire

West Middlesex

Mid Yorkshire

Walsall

North Middlesex

Mid Essex

Maidstone and Tunbridge Wells

Sandwell and West Birmingham (not fully signed off as of September 2011)

The Royal National Orthopaedic Hospital (not fully signed off as of September 2011)

The 22nd trust on the Department’s list, North Bristol NHS Trust, has repeatedly expressed puzzlement about their inclusion. A spokesman assured me that their PFI deals are financially sound, and that repayments account for 8 per cent of their budget. They are represented in a different colour on the map to highlight the disagreement.

Additional research by Helen Robb. Updated 14:50 to acknowledge North Bristol NHS Trust’s objections.

Content from our partners
Where do we get the money to fix the world's biggest problems? – with ONE
Labour's health reforms can put patients first
Data science can help developers design future-proof infrastructure

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU