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The Private Financing Of Nhs Hospitals: Politics, Policy And Practice

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  • Mark Hellowell
  • Allyson M. Pollock

Abstract

This article outlines and critiques the main fiscal and economic rationales for the Private Finance Initiative and examines the impact of the policy on the long‐term financial viability of NHS trusts. It concludes that the PFI funding of capital investment is highly problematic. Its high costs can have a negative impact on the finances of health systems.

Suggested Citation

  • Mark Hellowell & Allyson M. Pollock, 2009. "The Private Financing Of Nhs Hospitals: Politics, Policy And Practice," Economic Affairs, Wiley Blackwell, vol. 29(1), pages 13-19, March.
    • Handle: RePEc:bla:ecaffa:v:29:y:2009:i:1:p:13-19
    DOI: 10.1111/j.1468-0270.2009.01861.x
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    References listed on IDEAS

    as
    1. Jean Shaoul & Anne Stafford & Pam Stapleton, 2008. "The Cost of Using Private Finance to Build, Finance and Operate Hospitals," Public Money & Management, Taylor & Francis Journals, vol. 28(2), pages 101-108, April.
    2. David Heald & Neal Geaughan, 1997. "Private Finance Initiative: Accounting for the Private Finance Initiative," Public Money & Management, Taylor & Francis Journals, vol. 17(3), pages 11-16, July.
    3. Oliver Hart, 2003. "Incomplete Contracts and Public Ownership: Remarks, and an Application to Public-Private Partnerships," Economic Journal, Royal Economic Society, vol. 113(486), pages 69-76, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Graeme A. Hodge, 2010. "Reviewing Public–Private Partnerships: Some Thoughts on Evaluation," Chapters, in: Graeme A. Hodge & Carsten Greve & Anthony E. Boardman (ed.), International Handbook on Public–Private Partnerships, chapter 5, Edward Elgar Publishing.
    2. David Parker & Catarina Figueira, 2010. "PPPs in Developed and Developing Economies: What Lessons can be Learned?," Chapters, in: Graeme A. Hodge & Carsten Greve & Anthony E. Boardman (ed.), International Handbook on Public–Private Partnerships, chapter 23, Edward Elgar Publishing.
    3. repec:hal:cepnwp:hal-01256505 is not listed on IDEAS
    4. Tony Bovaird, 2010. "A Brief Intellectual History of the Public–Private Partnership Movement," Chapters, in: Graeme A. Hodge & Carsten Greve & Anthony E. Boardman (ed.), International Handbook on Public–Private Partnerships, chapter 3, Edward Elgar Publishing.
    5. Alonso, José M. & Clifton, Judith & Díaz-Fuentes, Daniel, 2015. "The impact of New Public Management on efficiency: An analysis of Madrid's hospitals," Health Policy, Elsevier, vol. 119(3), pages 333-340.
    6. Rui Sousa Monteiro, 2010. "Risk Management," Chapters, in: Graeme A. Hodge & Carsten Greve & Anthony E. Boardman (ed.), International Handbook on Public–Private Partnerships, chapter 12, Edward Elgar Publishing.
    7. José-Ignacio Antón & Rafael Muñoz de Bustillo & Enrique Fernández Macías & Jesús Rivera, 2014. "Effects of health care decentralization in Spain from a citizens’ perspective," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(4), pages 411-431, May.
    8. Mike Raco, 2013. "The New Contractualism, the Privatization of the Welfare State, and the Barriers to Open Source Planning," Planning Practice & Research, Taylor & Francis Journals, vol. 28(1), pages 45-64, February.
    9. Christine André & Philippe Batifoulier & Mariana Jansen-Ferreira, 2016. "Privatisation de la santé en Europe. Un outil de classification des réformes," Working Papers hal-01256505, HAL.
    10. Mariateresa Torchia & Andrea Calabrò, 2018. "Increasing the Governance Standards of Public-Private Partnerships in Healthcare. Evidence from Italy," Public Organization Review, Springer, vol. 18(1), pages 93-110, March.

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