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Trust was warned not to sign PFI deal that left it needing a bailout

BMJ 2012; 344 doi: (Published 29 June 2012) Cite this as: BMJ 2012;344:e4472
  1. Zosia Kmietowicz
  1. 1London

An NHS hospital trust ignored warnings from the NHS regulator that a deal for a new hospital under the private finance initiative (PFI) was unaffordable and could leave it bankrupt, says an independent report into the events.1

Monitor, the regulator of foundation trusts, had told Peterborough and Stamford NHS Foundation Trust (as well as the Department of Health and the Treasury) that its financial targets appeared unachievable, says the report from management consultants KPMG, which was commissioned by Monitor to analyse what lessons could be learnt from the events around the deal.

The trust had believed it could increase its earnings by more than 9.2% a year in …

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