Derriford: The plans include to beds and operating theatres

Derriford Hospital's Vanguard Project in Plymouth ran into trouble after two out of the three contractors bidding to carry out the work pulled out.

Negotiations with the last of the three bidders for the 17-operating theatre, 400-bed centre have also ceased.

A new plan will go for approval in July and put out tender in by the autumn.

Competition lack

The project ran into trouble after one of the bidders for the contract dropped out to concentrate its business elsewhere, while the other withdrew due to the lack of a business partner.

As a result of this, local health chiefs contacted the last remaining bidder this week to formally cease negotiations with it.

Project Director Andy Ibbs said: "It would have been far from ideal to be negotiating with just one bidder in a major project such as this.

"It would have presented us with problems such as a lack of visible competition and made it very difficult to ensure that what we deliver is the best value for money.

"When dealing with public money, it is extremely important that the process for such a major project is as competitive as it can be."

Scaled down

The new plan proposes splitting the scheme into more manageable parts before being re-advertised.

It may also be scaled down slightly from the 17 theatres and 400-beds originally planned.

The revised plan will also look to provide more healthcare closer to people's homes.

It will be built under the PFI and owned privately, then effectively leased back to the National Health Service.