Source: BBC News

Hospitals could be forced to close and patient care could suffer because of the spiralling cost of using private finance, according to a study.

Researchers from Edinburgh University said the annual cost to the Scottish health service of PFI or PPP contracts will rise to £500m within five years.

Health Minister Andy Kerr defended PFI, accusing the report's authors of a "breathtaking lack of understanding".

The SNP said the study proved that private finance initiative had failed.

Under PFI, and its "public private partnership" (PPP) successor, a private sector consortium designs, builds and finances a health institution.

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Posted by pichu at December 7, 2006 11:35 PM