Mid Yorkshire Hospitals on the brink of financial collapse
11:57am 22nd September 2011
(Updated 1:10pm 23rd September 2011)
The Health Secretary is warning that more than 60 hospitals are on the brink of financial collapse.
That includes Mid Yorkshire Hospitals; a services to around half a million people living in the Wakefield and North Kirklees, which also treats patients from surrounding areas like North Yorkshire.
Andrew Lansley says 22 NHS Trusts are struggling.
He's blaming privately-funded projects, such as buildings and maintenance work.
Commenting on figures from the Health Secretary saying 60 hospitals are facing severe financial difficulties due to PFI payments,
NHS Confederation deputy chief executive David Stout said:
"We must not forget PFI projects have provided the NHS with some much needed new buildings and there are few realistic alternatives for funding significant hospital developments. But these deals were devised at a time when funding coming into the NHS was growing and income was stable.
"The issue now is that the NHS is undergoing fundamental change and income for hospitals to cover the costs of PFI will become less stable, primarily because the NHS faces an unprecedented financial challenge.
"PFI contracts are long term deals lasting up to 25 years but, in order to respond to the current unprecedented financial challenge, we will need to close some services or parts of hospitals in order to invest in more efficient services elsewhere that are better for patients. With resources locked into PFI contracts, we will find it harder to make these vital changes. "There is a real danger that we will be paying for hospitals that are not being fully used."
John Healey MP, Labour's Shadow Health Secretary, said in response to the Tory-led Government's announcement on hospital finance:
"Andrew Lansley is trying to offload blame for the present problems his policies are causing in the NHS.
"The reality is that all hospitals are being forced by the Tory-led Health Bill to make deeper cutbacks, as billions are wasted on new bureaucracy in their huge NHS reorganisation."
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