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Health Policy and Evidence Based Care. The Private Finance Initiative and New Hospitals
Member rating: No Rating | Words: | Submitted: Mon Jun 19 2006
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HAR 209 Health Policy and Evidence Based Care The Private Finance Initiative and New Hospitals Since 1992 the governments preferred method of funding capital works for public services has been through the Private Finance Initiative (PFI), in other words raising the money for new capital assets through loans from the private sector. In the case of hospitals this means that a consortium of private companies design, build and operate the hospital, in return they are paid an annual fee, by the particular NHS trust that commissioned the hospital, to cover the cost of borrowing and maintaining the hospital. This fee can also include any other non-clinical services provided and is usually based on a 25-35 year contract. Several new hospitals have been built using the PFI, in recent years however this method of financing new hospitals has come in for a great deal of criticism, because of its high cost and impact on...
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