First PFI-built NHS hospital ends contract early
GoogleThe first NHS hospital in the UK to be built under private finance initiative (PFI) has ended the contract put in place for its construction and maintenance.
The Cumberland Infirmary in Carlisle cost £67m and was built and run through a scheme agreed under Tony Blair's Labour government. It opened in 2000 with a 45-year contract.
North Cumbria Integrated Care (NCIC), which runs the hospital, has announced it has left the contract four years ahead of a 30-year break clause, effective from 31 March.
NCIC said the no-fault voluntary termination will provide value for money and was agreed by the Department for Health and Social Care and Treasury.
The trust had to pay annual fees for the PFI loan and maintenance. In 2011 the Conservative and Liberal Democrat coalition government said the agreement was putting the hospital trust at financial risk.
The trust had previously expressed "deep concerns" over materials used in the hospital amid fire safety fears.
NCIC said commercial conversations were ongoing and it was working with Health Management Carlisle Limited - the PFI firm - and its primary sub-contractor Mitie to facilitate the transition.
In a statement, the trust said: "By working together, we have delivered a long-term solution that strengthens financial sustainability and creates greater flexibility to invest in services for the people in the North East and North Cumbria."
