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Appraising and Evaluating PFI for NHS Hospitals
Author(s) -
Froud Julie,
Shaoul Jean
Publication year - 2001
Publication title -
financial accountability and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.661
H-Index - 44
eISSN - 1468-0408
pISSN - 0267-4424
DOI - 10.1111/1468-0408.00130
Subject(s) - private finance initiative , value for money , business , finance , private sector , investment (military) , accounting , public sector , value (mathematics) , actuarial science , public economics , economics , economic growth , political science , economy , machine learning , politics , computer science , law
This paper explores the use of appraisal in the development of proposals to use private finance to provide acute hospitals under the Private Finance Initiative (PFI). It addresses the extent to which value for money (VFM) and affordability (which must be satisfied to enable a scheme to be approved) are demonstrated in the documents prepared by hospital Trusts. It identifies a number of issues (such as the transfer of risk and the development of public sector comparators) that pose new problems for investment appraisal, which are specific to its application to PFI.