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Home Industry News Hospital building and improvement projects ‘at risk’

Hospital building and improvement projects ‘at risk’

26th January 2009

Hospital building and improvement projects are at risk as a result of the credit crunch, according to a leaked health service memo.

The document from a conversation between a senior NHS manager and health secretary Alan Johnson said the Private Finance Initiative programme’s funding was likely to cease, with no “plan b” to pay for such schemes.

It went on to note a “capital desert” should be expected over 2010 and 2011, with financial support likely “to get really tight”.

Last month, Mr Johnson revealed NHS Primary Care Trusts would receive 164 billion pounds in funding over 2009 to 2010 and 2010 to 2011.

As a result, funding will rise to an average of 1,612 pounds per person over the second period, which is 1,186 pounds higher than 1996 to 1997.

Speaking at the time, Mr Johnson said: “The NHS is in good shape and treating more patients than ever.”

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