latest health care news

25.09.18

Government agrees to bail out £335m Royal Liverpool Hospital after Carillion crisis

The government is set to bail out the £335m Royal Liverpool Hospital (RLH) after the collapse of Carillion earlier this year, following in the same footsteps as the stalled Birmingham hospital.

Sky News has reported that the government will announce in the next few days that it will terminate the RLH private finance initiative (PFI) deal and bring the hospital under public ownership.

After Carillion went into liquidation, it left the RLH in Liverpool and the £350m Midland Metropolitan Hospital in Birmingham with serious delays and concerns over whether they would ever be finished.

Last month, however, the government agreed to fund the remainder of the construction of the Birmingham hospital ahead of its 2022 opening.

The trust that runs RLH will hold a board meeting today and, because private-sector contracts relating to the hospital’s construction expire at the end of the month, a formal announcement is expected to be made by the weekend.

Sky also revealed that an engineering assessment carried out on the work already done by Carillion on the RLH “discovered major structural defects” and could incur substantial additional costs to the public purse.

Liverpool Walton MP Dan said during told Prime Minister’s Questions back in August that the hospital was now “a monument to corporate greed,” which echoes the findings of a scathing Commons committee inquiry from May.

MPs in the committee argued that the halted hospitals were a consequence of “rotten corporate culture” at the now-defunct Carillion company.

 

Enjoying NHE? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Comments

There are no comments. Why not be the first?

Add your comment

 

national health executive tv

more videos >

featured articles

View all News

last word

Hard to be optimistic

Hard to be optimistic

Rachel Power, chief executive of the Patients Association, warns that we must be realistic about the very real effects of continued underfunding across the health service. It’s now beyond more > more last word articles >

health service focus

View all News

comment

Nurses named as least-appreciated public sector workers

13/06/2019Nurses named as least-appreciated public sector workers

Nurses have been named as the most under-appreciated public sector professi... more >
Creating the Cardigan integrated care centre

10/06/2019Creating the Cardigan integrated care centre

Peter Skitt, county director and commissioner for Ceredigion Hywel Dda Univ... more >

interviews

How can winter pressures be dealt with? Introduce a National Social Care Service, RCP president suggests

24/10/2018How can winter pressures be dealt with? Introduce a National Social Care Service, RCP president suggests

A dedicated national social care service could be a potential solution to s... more >

the scalpel's daily blog

Mid Yorks Hospitals NHS Trust: Our improvement journey

28/05/2019Mid Yorks Hospitals NHS Trust: Our improvement journey

Chief executive of the Mid Yorkshire Hospitals NHS Trust, Martin Barkley, writes for NHE to guide us through his trust’s improvement journey. It’s arguably a ... more >
read more blog posts from 'the scalpel' >

editor's comment

25/09/2017A hotbed of innovation

This edition of NHE comes hot on the heels of this year’s NHS Expo which, once again, proved to be a huge success at Manchester Central. A number of announcements were made during the event, with the health secretary naming the second wave of NHS digital pioneers, or ‘fast followers’, which follow the initial global digital exemplars who were revealed at the same show 12 months earlier.  Jeremy Hunt also stated that by the end of 2018 – the 70th birthday... read more >