Chiefs confident ‘Wynyard hospital sums will add up’

HEALTH bosses say they are confident that financial plans for a new hospital will be successful despite some trusts struggling to pay back privately-borrowed money.

North Tees and Hartlepool NHS Foundation Trust hopes to get Treasury approval before the end of the year for a new £300m hospital at Wynyard.

It will be funded through a Private Finance Initiative (PFI) scheme, where private capital is used to fund public infrastructure projects like schools and hospitals.

The public sector body then repays the private firm with interest over an agreed time period, like a mortgage.

There are currently around 700 PFI contracts in operation around the UK, including £12.6bn-worth of schemes within the NHS.

But more than 60 hospitals from 22 trusts across the country have told Health Secretary Andrew Lansley they are “on the brink of financial collapse” because of spiralling costs of such schemes.