Department of Health calls on Barts and The London NHS Trust to reconsider plans for 拢1.2bn PFI scheme

The government could be presented with a multimillion-pound bill for wasted designs on the 拢1.2bn Barts and Royal London PFI scheme if the rethink it requested on the project goes ahead.

The Department of Health revealed shortly before the new year that it had asked Barts and The London NHS Trust to consider whether the St Bartholomew鈥檚 part of the project, which is worth 拢400m, should be dropped from the scheme.

The call came even though the project has been running for four years and has just reached financial close. It is part of a wider trend in government to proceed with smaller scale healthcare facilities in the region of 拢100m to 拢300m.


A case for treatment: How the Royal London could look in the future

A case for treatment: How the Royal London could look in the future


Sources close to the scheme told 好色先生TV that any decision to axe St Bartholomew鈥檚 could result in the trust paying up to 拢40m in wasted design and planning fees.

One insider said: 鈥淚 would be amazed if it gets chopped. I don鈥檛 understand why it has been judged so unaffordable now when it was judged affordable just a few years ago. There would be an outcry from the other bidders. It would be a legal bonanza for someone.鈥

The source estimated that about 60% of the 拢150m design budget had been spent, of which between 拢30m and 拢40m had gone on designs for St Bartholomew鈥檚. The Skanska Innisfree consortium that is undertaking the project would expect the trust to pay the difference.

The Department of Health fears that the change to 鈥減ayment by results鈥 in hospital funding will mean less guaranteed income to pay PFI consortiums their monthly rental.

It said: 鈥淲e鈥檝e asked the trust to reconsider its plans to ensure that the scheme is both affordable and meets local needs. The trust has been asked to consider further the inclusion of the Barts element within the scheme as part of this process.鈥

The row comes against a background of increasing cost constraints within the NHS. Last month Patricia Hewitt said 鈥渆very element of health spending鈥 was under review.