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NHS: Private Finance Initiative

Written parliamentary question to the Secretary of State for Health

Tuesday, February 3rd, 2015

Keith Vaz: To ask the Secretary of State for Health, which NHS bodies are responsible for monitoring costs and performance of PFI contracts.

Dr Daniel Poulter: The most recently published figure for current annual cost of private finance initiative (PFI) repayments shows that at the end of 2013/14, the annual revenue payments (Unitary Charge Payment) for PFI schemes in the health sector was £1,806 million.

Under the standard PFI contract, contractors are required to set up a Performance Monitoring System against the individual service specifications. The contract also requires the National Health Service procuring body (e.g. an NHS trust) to establish its own monitoring arrangements to measure the performance of the contractor, to be done either using the operator's system or its own (under the contract the trust always has the right to check how the contractor is operating). Officials from the Department help local contract managers where requested in relation to PFI contractual issues.

Under this Government, officials from the Department are also working with individual operational PFI projects on a programme to secure cost savings from contracts following a Treasury-led pilot exercise in 2011. In June 2013, a Code of Conduct was agreed with contractors involved in the PFI/Public Private Partnership industry to work together on savings initiatives.