An interesting insight of the legacy that we will probably pass on to

future generations.

The revelation that Private Funding Initiative (PFI) projects cost the NHS

£65billion per annum shouldn’t really surprise us, but it should worry us.

True, this has meant a rapid expansion in hospital building and it’s difficult to

see that what has been achieved could have been achieved without some kind

of additional financial input.

This all felt more manageable when there was cash in the system, but less so

when money is tight. Bear in mind that the £65billion actually represents fixed

costs. In other words, none of these costs are optional and they are ongoing.

Some of the contracts are extremely complex and are tied in to catering and

cleaning contracts and the repayment costs are expensive.

Of course it is easy to be wise with hindsight. However, the long term fixed

costs associated with these projects, plus the lack of flexibility, were aspects

associated with these projects that made many of us nervous when all this

was being planned. The question is whether we shall learn from all this?

The lure of a gleaming new hospital now seems less attractive when our