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28
Jun

Warnings of 'dodgy PFI deal' ignored


A report from the The Guardian claims that a warning from the NHS regulator Monitor was ignored by Labour ministers, after the watchdog told them that the deal for Peterborough City hospital was not financially fit.

A report from the The Guardian claims that a warning from the NHS regulator Monitor was ignored by Labour ministers, after the watchdog told them that the deal for Peterborough City hospital was not financially fit.

A report from the NHS regulator said a study of the deal for the hospital, which opened in November 2010, revealed major doubts about the long-term affordability of the private finance initiative for the Trust. The health trust, health department and the Treasury were all in 2007 told not to go ahead with the deal.

The Guardian also pointed out that the Trust's finance director resigned as the buildingopened, and “a little more than six months later the repayments on the debt meant that the hospital was heading for a £40m loss on just £200m of revenue.”

At the end of its financial year the trust recorded a deficit of £45.8m and needed a bailout from taxpayers.

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