Through the Private Finance Initiative scheme private companies have built NHS hospitals and leased them back to the NHS. They also run support services as part of these contracts. This has been highly profitable for the companies involved, but years down the line earlier concerns that PFI offers very poor value are being borne out.
A number of NHS hospitals are struggling to cope with cost of meeting their PFI debts. South London Healthcare Trust was the put into adminstration after being put on a list of 22 trusts burdened with PFI debt.
"In 1990, hospitals paid no charge on their land, buildings and assets; today many PFI hospitals are paying more than 15%. The figure is rising fast"
Professor Allyson Pollock
The figures for this graph were partly taken from a 2009 report by Moritz Liebe and Allison Pollock, published by the Centre for International Public Health Policy. The lower two bars in the chart were derived from our own calculations.