Hospital re-nationalised after PFI shambles

“The government is expected to bail out Liverpool’s new £335 million NHS hospital and take it back into public ownership, nine months after the failure of Carillion left the project in crisis.

Carillion, the public sector contracting and construction group, collapsed in the new year with £2.6 billion of pension liabilities and £2 billion of debts.

Matthew Hancock, the health secretary, is understood to have told officials to end the impasse surrounding the hospital, which had been due to open last year. He is ready to say within days that the Royal Liverpool Hospital private finance initiative deal is being cancelled and that the project is returning to full public ownership, according to Sky News.

The trust that runs the hospital is due to hold a board meeting today and a statement from ministers may be timed to coincide with it. Private sector contracts relating to the project are set to expire before the end of the month.”

Source Times (pay wall)