Sick headaches in the health sector
Article Abstract:
UK hospital private finance initiative schemes have encountered obstacles. The government is seeking to push through five such schemes prior to a 1997 election. There is concern in the private sector that these projects may not give a guaranteed stream of income and uncertainty about what would occur if a National Health Service Trust were to go bankrupt. The consortia are asked to provide services supporting hospitals, but they do not have control over quality levels for medical care, which affects how successful the projects will be.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Wanted: investors to plug the equity gap
Article Abstract:
There is a need for more finance to fund UK private finance initiative (PFI) schemes. PFI projects have tended to be financed through project-finance schemes, which leave highly-geared financial structures, while equity is produced by trade partners. PFI bids are expensive and negotiation periods are often prolonged. This has led to bad publicity for PFI schemes. Changes will have to be made in order to attract new finance, and the length of the bidding process could be shortened.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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