Hospitals bill too high in face of spending cuts, leading figures warn

Leading NHS figures have called for PFI contracts to be renegotiated to allow trusts to cope with spending cuts.

It follows the revelation that the NHS in England faces a total bill of 拢65bn for PFI hospitals according to figures obtained by the BBC.

Its website said it meant some trusts were making repayments of more than 10% of their turnover.

In total, the NHS currently pays back 拢1.25bn each year - a figure which rises year-on-year until 2030 when it will top 拢2.3bn. The final payment will not be made until 2048. The health service has been told to find up to 拢20bn of savings by 2014 despite the fact its budget has been protected.

Nigel Edwards, director of policy at the NHS Confederation, which represents trusts, said: 鈥淭hey were planned for a different world. I鈥檓 sure that in some cases people feel their hands are tied.鈥

Dr Mark Porter, of the British Medical Association, added: 鈥淟ocking the NHS into long-term contracts with the private sector has made entire local health economies more vulnerable to changing conditions. Now the financial crisis has changed conditions beyond recognition, so trusts tied into PFI deals have even less freedom to make business decisions that protect services, making cuts and closures more likely.鈥

Professor John Appleby, chief economist at the King鈥檚 Fund health think-tank, said: 鈥淚t is a bit like taking out a pretty big mortgage in the expectation your income is going to rise, but the NHS is facing a period where that is not going to happen.

A Department of Health spokeswoman told the BBC the schemes were providing 鈥渧alue for money鈥 and were 鈥渁ffordable鈥.

She added: 鈥淎ll trusts, not just those with PFI contracts, will need to deliver significant efficiencies over the coming years in order to meet rapidly rising demands while protecting front-line services. One of the benefits of PFI is that the buildings are always contractually required to be kept in good condition - good maintenance will always cost more than not maintaining facilities to a high standard.鈥

Examples cited by the BBC

路&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;Coventry and Warwickshire NHS Trust - Currently spending almost 15% of its income on its PFI project. Chief executive Andrew Hardy says the trust is already looking to reduce its payments.

路&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;South London Healthcare NHS Trust - Has major PFI projects in Bromley and Woolwich. Spending 13% of income on repaying debt. Trust says there are 鈥渦ndoubtedly some constraints from having these fixed costs鈥.

路&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;Dudley NHS Trust - Bosses say they are looking for 鈥渋nnovative鈥 ways to reduce the PFI bill, which now accounts for 13% of turnover.

路&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;&苍产蝉辫;Buckinghamshire NHS Trust - Three hospitals developed under PFI. Trust admits repayments 鈥渋mpact on the ease at which we can make savings鈥.