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DoH denies PFI hospitals moratorium

The Department of Health (DoH) has denied rumours there is, in effect, a six-month moratorium on new PFI hospitals.

It says that hold-ups are down to several projects reaching a critical stage and needing careful examination on value for money grounds.

Patricia Hewitt, health secretary, has put on hold the University Hospitals of Leicester application to become a foundation trust while she reviews its PFI scheme because of doubts about the affordability of such finance initiatives.

University Hospitals Birmingham is also still waiting for a decision for the “deed of safeguard” it needs from the health secretary so it can close its own £700m deal.

The move comes after the DoH’s decision to review the £1.1bn PFI project to rebuild St Bartholomew’s and Royal London hospitals in the capital.

Now a survey of 117 chief executives of National Health Service (NHS) trusts has found that almost half of hospital trust managers say building and refurbishment projects are being delayed.

Hewitt writes in The Independent that the NHS is back in business and the biggest ever hospital building programme is under way.

References: Financial Times 19/01/06 page 2, The Times 19/01/06 page 1-2, The Guardian 19/01/06 page 11, The Independent 19/01/06 page 18, page 33

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