Private finance deal signed for Norfolk hospital

Last week saw the signing of the first complete deal in the NHS under the private finance initiative scheme for a £193m ($290m) hospital in Norfolk. Doubts are, however, growing about the success of scheme.

The health secretary, Stephen Dorrell, said: “I am pleased that the contract has been signed for the Norfolk and Norwich 2000 scheme, the first complete new build major district acute hospital to be developed under the government's PFI [private finance initiative].” He added: “The Norfolk scheme is an excellent example of how privately financed option can, and should, offer lower risk than would be the case in the public sector—better value for money, superiority in qualitative terms, and affordability to the purchaser.”

The chancellor, Kenneth Clarke, …