NHS could transfer PFI hospitals to charities E-mail
Saturday, 06 September 2008

NHS trusts may hand their private finance initiative hospitals over to specially created charities to avoid reporting PFI debts on their balance sheets.

The controversial plans would involve trusts conceding control of the hospitals to a third party.

The move has been prompted by new PFI accounting rules which will come into force next year. The rules will see most PFI schemes move onto the public sector's balance sheet.
 
The Department of Health is concerned that adopting the rules could put NHS trusts in debt. It has estimated an otherwise financially healthy trust may take 10 years to recover from the change.

 

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