The Cost of Using Private Finance to Build, Finance and Operate Hospitals

Jean Shaoul, Anne Stafford and Pam Stapleton

Public Money & Management, 2008, vol. 28, issue 2, 101-108

Abstract: This article analyses the cost of using private finance to build hospitals under the UK government's Private Finance Initiative (PFI). Hospital trusts' annual payments to their private sector partners are higher than expected and are taking 11% of their budget. The additional cost of private over public finance for the first 12 hospitals is about £60M a year, which is 20--25% of the trusts' income. PFI charges create budget inflexibilities and are increasing the pressure on the NHS to cut their largest cost: the jobs, working conditions and pay of their staff.

Date: 2008
References: View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://hdl.handle.net/10.1111/j.1467-9302.2008.00628.x (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:pubmmg:v:28:y:2008:i:2:p:101-108

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RPMM20

DOI: 10.1111/j.1467-9302.2008.00628.x

Access Statistics for this article

Public Money & Management is currently edited by Michaela Lavender

More articles in Public Money & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().