Sherwood Forest Hospitals NHS Foundation Trust runs Newark Hospital. Health minister Mr Jeremy Hunt has agreed to look into the finances of the trust that runs Newark Hospital. It follows lobbying by Newark MP Mr Robert Jenrick, who has called for the private finance initiative (PFI) at Sherwood Forest Hospitals NHS Foundation Trust (SFHFT) — which is in special measures — to be assessed. Other trusts that are also in special measures and/or have high PFI debts will also be looked at. A Department of Health spokesman said: “The health secretary is happy to consider the issues raised with him by Mr Jenrick. It’s also important to note that the local hospital is already getting intensive support as part of our new special measures regime. “In the past, some PFI schemes in the NHS were over ambitious, expensive and did not deliver for patients, which is why this Government has introduced stricter rules for new contracts and helped hold poor performing companies to account.” SFHT’s PFI debt came from the redevelopment of King’s Mill Hospital, Sutton-in-Ashfield, and refurbishment of Newark Hospital in the early 2000s. The trust spends £3.29m a month repaying the King’s Mill PFI debt and £270,000 per month on the Newark one. The PFI contract will run until March 31, 2043. It is estimated that the total cost over its full term from 2005 to 2043 would be £2.5bn. The King’s Mill redevelopment cost £298.9m, while refurbishing Newark Hospital cost £8.5m. Mr Jenrick said: “My concern is the weight of that debt must impact the care the trust is able to provide. “The King’s Mill PFI debt costs the trust around 16% of its annual budget, which means the management are operating with one arm tied behind their back.” He said he had raised the issue several times with Mr Hunt. Mr Jenrick said: “I will be following up with him to ensure he assesses the impact of the debt on services and what package the Government could provide for the trust. “I am also raising awareness of the ability of the trust to buy back the debt itself, and asking the Department of Health to facilitate the financing of that should our trust or any other wish to do so.” Mr Paul Baggaley, secretary of the Say Yes To Newark Hospital campaign, said: “We very much welcome a look at the finances of the trusts that are in special measures and have high levels of PFI debt. “There is no doubt the PFI debt incurred by the trust has had a detrimental impact on services at Newark. The debt is unsustainable and as the debt has increased we have seen services cut at Newark.” Mr Paul O’Connor, chief executive of the trust, said: “We are absolutely committed to providing high-quality care to all of our patients. The costs related to our PFI do not have a financial impact on our frontline services. “It is true the costs associated with the PFI contract remain expensive, but the facilities on offer to patients and their families at our hospitals are some of the best in the country. Facilities at Newark are consistently rated highly by patients thanks to the £8.5m investment that came as a result of the PFI. “We continue to proactively manage the costs related to our PFI and are in discussion with Monitor and the Department of Health to achieve a permanent solution.” newarkadvertiser.co.uk/articles/news/Jeremy-Hunt-to-look-into-hospitals-PFI-debts
Posted on: Sun, 14 Dec 2014 09:38:40 +0000
Trending Topics
Recently Viewed Topics
© 2015