News Roundup [abridged Versions Appear In The Paper Journal]

NHS trust is losing out to private investors, says watchdog

BMJ 2006; 332 doi: http://dx.doi.org/10.1136/bmj.332.7549.1051-a (Published 04 May 2006) Cite this as: BMJ 2006;332:1051
  1. Zosia Kmietowicz
  1. London

    The profits of a private company involved in an early private finance initiative (PFI) deal to pay for a new hospital have soared to “unacceptable” levels, says the public finance watchdog.

    The private sector consortium Octagon pushed up the profits for its investors by refinancing the Norfolk and Norwich PFI hospital project. The rate of return rose from a predicted 19% to 60%, says the parliamentary Public Accounts Committee in a report. The deal made £82m (荤120m; $150m) for its investors. And while the trust stands to make £34m, it will have to pay the consortium up to £257m to end the contract with Octagon early.

    The contract between the …

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