UK (Parliament Politics Magazine) – Ministers hire firms for £6m to explore private funding for NHS clinics, sparking fears of costly PFI-style failures while Labour pledges public ownership.
As reported by The Guardian, firms received £6m to help ministers plan privately funded NHS clinics, sparking fears of another PFI-style failure.
How could NHS clinics be built using private funds?
The Department of Health and Social Care has granted £3m contracts to Deloitte and Addleshaw Goddard to advise on NHS initiatives.
The consultants are guiding DHSC to explore public-private partnerships to develop multiple new neighborhood health centers in England.
Deloitte and Addleshaw Goddard will develop the business case, outline possible PPP formats, and handle financial modeling.
DHSC may team with private finance, as Deloitte and Addleshaw Goddard are tasked with “potentially supporting [DHSC] through the procurement” in deprived regions.
Campaigners warn that using private finance for NHS health centers risks repeating past PFI failures, with the National Audit Office citing costly errors in hospitals and schools from 1990–2020.
The NHS in England remains liable for over £40bn to private firms, a burden set to continue until the 2040s.
What did Johnbosco Nwogbo say about private finance in the NHS?
Johnbosco Nwogbo, a campaigner at the campaign group We Own It, said,
“Private finance has been a disaster for our public services. PFI is a ticking timebomb beneath our NHS, now blowing up in the face of patients.”
He stated,
“Some NHS hospitals are spending more on PFI repayments than on medicines. Profit continues to be taken out by private finance investors, which could be used instead to treat patients.”
Mr Nwogbo said,
“While the state of the public finances is dire, the government would be foolhardy and indeed reckless to bring back a version of PFI, given it proved such an expensive rip-off the last time.”
He warned that Labour partnering with private finance would break its manifesto promise to keep the NHS fully public and publicly funded.
What did the Department of Health say about using PPPs for NHS projects?
The DHSC responded to a freedom of information request from Mr Nwogbo, saying,
“The government is exploring the feasibility of using new public private partnership models for taxpayer-funded projects in very limited circumstances, where they could represent value for money.”
They added,
“This includes exploring the potential to use PPPs to deliver certain types of primary and community health infrastructure.”
Referring to care, a DHSC spokesperson said the department is reviewing a variety of approaches to ensure the best possible care for patients across the country.
They added,
“All proposals are subject to robust value for money assessments to ensure taxpayers get the best possible return on investment in our health services.”
What did Matthew Taylor say about using private investment in the NHS?
Matthew Taylor, NHS Confederation chief, urged ministers to seek private sector support amid the NHS’s shortfall for building upgrades and equipment.
He said,
“Given the strain on public finances, private investment is one of the only ways to inject vital capital funding into the NHS so it can build modern healthcare facilities fit for the 21st century.”
Mr Taylor stated,
“This does not mean resurrecting the old private finance initiatives model, which has faced some justified criticism.”
He added,
“To ensure the NHS can deliver on the ambitions of the government’s Ten-Year Health Plan, more capital investment is crucial. Private investment is one of the only ways to invest the capital sums needed to ensure quality 21st century healthcare facilities.”
What did the NHS Confederation report say about using private investment in the NHS?
The NHS report, Towards a new co-investment model: what is next for NHS public-private partnerships?, says private investment could address capital shortfalls.
It recommends a framework for trusts to develop PPPs suited to local needs. The report suggests using overseas contract models for efficiency. It also calls for Treasury oversight to ensure value for money.
Key facts about the NHS 10-year plan
The NHS 10-year plan includes creating Neighborhood Health Centers to bring care closer to communities. It aims to make services digital via the NHS App and AI.
The plan also focuses on preventing illness and tackling health inequalities. New technologies like genomics will support predictive, preventative care.