Pollock AM, Shaoul J, Vickers N.
Private finance and “value for money” in NHS hospitals: a policy in search of a rationale?
British Medical Journal, 2002; 324: 1205-1209
The private finance initiative (PFI) brings no new capital investment into public services and is a debt which has to be serviced by future generations.
The government’s case for using PFI rests on a value for money assessment skewed in favour of private finance
The higher costs of PFI are due to financing costs which would not be incurred under public financing
Many hospital PFI schemes show value for money only after risk transfer, but the large risks said to be transferred are not justified
PFI more than doubles the cost of capital as a percentage of trusts’ annual operating income