NHS Treatment Centres: Private Sector

Health written question – answered on 18th March 2009.

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Photo of Mike Penning Mike Penning Shadow Minister (Health)

To ask the Secretary of State for Health what (a) potential and (b) actual financial liability his Department accepts for the capital projects associated with independent sector treatment centres.

Photo of Ben Bradshaw Ben Bradshaw Minister of State (Regional Affairs) (South West), The Minister of State, Department of Health

The Department has a duty to meet a residual value (RV) payment at contract expiry where such a payment exists under the terms of the contract. RV within the independent sector treatment centre (ISTC) programme relates to buildings and equipment (the assets) provided under the contract as part of the ISTC service.

The total capital liability due at current contract expiry is estimated at £229 million (total cost at expiry) across the ISTC programme. Contracts are due to expire at various points in time between 2009-10 and 2016-17.

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