28.06.12
Monitor report critical of Peterborough PFI deal
Peterborough’s hospital trust, which is likely to need a £50m Government bailout next spring to avoid finishing the year in debt, committed to a “potentially unaffordable PFI” scheme in 2007 despite Monitor’s concerns, a new report shows.
Peterboroughand Stamford Hospitals NHS Foundation Trust (PSHFT), which has massive repayments to cope with under its PFI scheme and finished £45m in deficit in 2011/12 – requiring a £41m Department of Health cash injection – says its five-year recovery plan means it will be close to breaking even by 2017. It says it will not need to go into the kind of special measures seen at South London Healthcare Trust this week.
Monitor says Labour ministers and local managers signed off on the PFI deal despite regulators’ concerns. Its report, released today, says: “On 12 January 2007 Monitor wrote toPeterboroughstating that it believed the long term affordability of the proposal to be in significant doubt. However,Peterboroughcommitted to the scheme in June 2007. Monitor’s power to preventPeterborough’s Board from committing to a potentially unaffordable PFI in 2007 was very limited.”
At its last board meeting, the trust predicted a £54.3m deficit by the end of next March, probably requiring further Government action.
But the trust’s chief executing, Dr Peter Reading says he is confident that it will keep finding “temporary measures” to deal with annual deficits until a permanent solution is worked out.
A report produced by KPMG and commissioned by Monitor into the financial troubles at the trust is at www.monitor-nhsft.gov.uk/sites/default/files/Peterborough%20Report%2026%20June%202012.pdf
(Image courtesy PSHFT shows the newPeterboroughCityHospitalwhen it was under construction)
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