Thursday, September 22, 2011,
The paint is barely dry on the sparkling new Tunbridge Wells Hospital at Pembury, but this morning (September 22, 2011) it has been included in a list of 60 named hospitals across the UK who are in serious difficulties because of the private finance initiatives (PFI) taken out to pay for them.
The new hospital came in at around £230 million, costing Maidstone and Tunbridge Wells NHS Trust around £17 million annually for 30 years from 2012 – a figure that will increase alongside inflation.
But today, the health secretary Andrew Lansley has today named the 22 hospital trusts whose “financial clinical and financial stability” is threatened by their PFI debts – and ours in Tunbridge Wells is on the list.
60 hospitals managed by these 22 trusts are “on the brink of financial collapse” because of these costly private finance initiative schemes, and there is already evidence that waiting lists for non–urgent operations have begun to rise as hospitals delay treatment to save money. Adding to this are growing fears over the impact of the financial crisis on care this winter.
Under the PFI deals, a private contractor builds a hospital or school. It owns the building for up to 35 years, and during this period the public sector must pay interest and repay the cost of construction, as well as paying the contractor to maintain the building.
However, the total cost of the deals is often far more than the value of the assets. As a result, Mr Lansley says, the 22 trusts “cannot afford” to pay for their schemes, which in total are worth more than £5.4billion, because the required payments have risen sharply in the wake of the recession.
He said hospitals would not be allowed to collapse financially. Over the next few weeks, Department of Health officials and executives at the 22 trusts will develop detailed plans for dealing with the crisis. Their proposals are expected to include significant cost–cutting and the renegotiation of PFI contracts.
Reading about this PFI rip-off nonsense suddenly made me realise it is just like the experiences of homeowners with the the sub-prime mortgage scam which methodically robs people of their homes.
A typical example is SPML Ltd, a dishonest sub-prime mortgage lending subsidiary of fraudsters, liars and thieves Lehmans Bros who caused the Global economic crisis, and are currently being investigated by the Financial Services Authority for their financial scams and general dishonesty.
PFI or Public Finance Initiatives are just bigger and better versions of the sub-prime mortgage scam really. Rotten financiers just weasil people into incomprehensible schemes designed to make the bankers rich and deprive property owners of their property. In this case the Taxpayer or Public Purse.
Nasty really !
Exactly the same principles apply. Simply put, the fraudulent financiers use the methods of confidence tricksters to lure the victim (Health Trust in this PFI case and ordinary householders in the case of the sub-prime domestic mortgages) into a false belief of affordability etc etc.
But the unsuspecting victim always finds a bit further down the line that the whole deal has been set up as giant scam which is inevitably unaffordable and is almost certain to end in re-possession by the fraudsters who lured their victims so cunningly with doublethink and garbage logic.
The new Tunbridge Wells Hospital at Pembury was fully opened in September when the A&E department transferred to the site. The old Kent & Sussex Hospital premises were finally locked having served the community since the 1930’s.