Hospital bought out of PFI contract

A mental health foundation trust has exercised a clause in its contract and ‘bought back’ a PFI hospital.

The MJ website reported that it is thought to be the first healthcare organisation in the country to undertake such a move, after using £18m from its £41m cash balance to buy itself out of the contract.

Trust finance director Colin Martin said it would save £14m in the long run and said: “In simple terms, it’s like paying off the mortgage early. At the time, in 2003, the PFI arrangement was the right decision, and it was the only way to acquire the hospital.”