Press release: NHS leaders call for PFI reform
22 Jun 2004
The private finance initiative in the NHS must be reformed if we are to realise its full benefits for patients, according to an NHS Confederation report published today.
The report is backed by the Future Healthcare Network, a group of hospitals and primary care organisations using private finance to build new healthcare facilities. It acknowledges the contribution a decade of PFI has made to modernising our hospitals after years of under-investment. However, it makes it clear that without a more flexible PFI regime, it will be difficult to realise the potential of any new investment and secure maximum improvements for patients.
Mark Britnell, co-chair of the Future Healthcare Network and chief executive of University Hospital Birmingham NHS Trust said: "Such a huge injection of capital resources into the NHS has enabled us to replace worn out hospitals with ground-breaking healthcare facilities that patients have a right to expect. But after a decade of healthcare PFI we have learnt lessons that now need to be properly addressed."
Based on the experience of Future Healthcare Network members, the Confederation has identified a ten point agenda for reform, including:
Ø Developing a more flexible PFI regime which allows NHS trusts to adapt to the fast-changing healthcare environment;
Ø Ensuring bed numbers are based on robust assessments of local needs;
Ø Reforming the appraisal model to support investment in good design;
Ø Dramatically cutting red tape by streamlining the number of project reviews;
Ø Overhauling the bidding process to cut legal costs and make better use of scarce planning and design skills.
Gill Morgan, NHS Confederation chief executive said: "PFI contracts usually span thirty years. During this time, new technology and new ways of working will transform how we provide hospital care. It has become increasingly clear that the PFI process needs to be less rigid to give trusts the flexibility they need to build hospitals that stand the test of time."
Gill Morgan added: "With a new round of PFI investment about to be announced, we believe there is now a real opportunity to take these reforms forward. We look forward to working with Government, unions, our commercial partners, and other stakeholders to seize this chance to develop a new generation of PFI schemes fit for the decades ahead."
Robert Creighton, co-chair of the Future Healthcare Network and Chief Executive of Ealing Primary Care Trust, commented: "The opportunity shouldn't be missed to build into PFI schemes whole systems flexibilities to enable diagnosis and care to be increasingly provided in settings outside hospitals. There may be lessons to learn from LIFT, which is emerging as a more effective way of taking into account the need for long term flexibility."
Notes for editors
1. The NHS is in the middle of one of the biggest investments in healthcare buildings in the world. PFI has helped to build over 27 new hospital schemes, funded by over £6 billion of private finance, and a further 41 large hospitals will open by 2013. A new round of PFI investment is due to be announced next month.
2. The Future Healthcare Network (FHN) is made up of organisations that are at the leading edge of thinking about the future development of health services in the UK. FHN is part of the NHS Confederation, but with its own board of management and dedicated staff.
3. The report, Getting the best out of future capital investment in health, is being launched to coincide with the NHS Confederation's annual conference in Birmingham. For copies of the report, please contact Will Little on 07880 500 726.
Contact details
An ISDN line is available for radio interviews (020 7959 7283). To arrange an ISDN interview please contact Will Little on 07880 500 726.
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