Public Finance Initiative attacked by BMA

At the launch of the report, Edward Leigh MP, chairman of the Committee of Public Accounts, said: “The evidence is that many public sector authorities are not doing a good job of managing operational PFI deals. Many contract managers do not have enough commercial expertise and the management of the contract is frequently not sufficiently resourced. A National Audit Office survey has revealed that more than 15% of the PFI projects examined are not being managed on a full-time basis. This is particularly worrying where changes are being made to the services and assets provided, at a cost to the taxpayer in 2006 of £180 million.”

He added that public sector authorities should keep private sector contractors “on their toes” by making proposed changes costing over £100,000 subject to competition.

Dr Jonathan Fielden, chairman of the BMA’s consultants committee, responded: “Money that Trusts needed for patient care has been diverted away from the frontline, and into the hands of private companies. It is time for the NHS to move away from this detrimental funding system and towards one that is more cost-effective and allows vital funds to get to patients.”