Audit office says government should renegotiate PFI contracts to get better value for money

BMJ 2010; 340 doi: (Published 18 June 2010) Cite this as: BMJ 2010;340:c3277
  1. Helen Mooney
  1. 1London

    The government should do more to increase value for money and generate further efficiencies in private finance initiative (PFI) hospital contracts in a bid to save the NHS some much needed cash, the National Audit Office has concluded.

    In its report on the performance and management of NHS hospital PFI contracts published today, the office found that the ability of NHS trusts to make savings from their PFI contracts is currently very limited.

    The present arrangement means that trusts must pay an index linked fixed sum on a PFI contract, making it difficult for them to make savings without cutting back on services. Contractors who secure economies of scale through managing multiple PFI …

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