Hospitals: Costs

Health written question – answered on 7th June 2007.

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Photo of Mark Hoban Mark Hoban Shadow Minister (Treasury)

To ask the Secretary of State for Health what assessment she has made of the through-life costs of (a) a conventionally procured hospital and (b) a private finance initiative hospital.

Photo of Andy Burnham Andy Burnham Minister of State (Department of Health) (Delivery and Quality)

To be approved, the private finance initiative (PFI) option for every national health service capital investment project must demonstrate that, overall, it is better value for money when compared to the publicly funded alternative, the public sector comparator (PSC). As part of the business case process a quantitative assessment involving an estimation of the discounted, risk adjusted whole life costs (facilities management, life-cycle for the full life of the contract) for both PSC and PFI options, is now performed using a standard model designed by HM Treasury.

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