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December 9, 2006

UK: Public Finance Initiatives and the NHS

Source: Herald & Times

By Andy Kerr, et al.

These projects don't drain money from NHS

ON December 7, you ran a major article on a report criticising Public Private Partnership projects, alleging they undermine health board budgets, and calling for a reassessment of public spending. This report is wrong on many levels and betrays a complete lack of understanding of public-sector finance. It would have been helpful to readers if even a single counter-argument had been presented.

Regardless of which method is used to build major hospitals, there are always long-term costs to pay. Rental costs are fully taken into account when the project is planned – the PPP only proceeds if it is more cost-effective than the public-sector option.

Full story...

Posted by pichu at December 9, 2006 11:47 PM