Is this extra cost due to the PFI contract?

Yes it is. It is because the NNUH provides only 987 beds compared with 1207 beds at the two hospitals which the NNUH replaced; and as we have seen in chapter 8, between 1996 and 2003, the number of beds at the new hospital appears to have been manipulated so as to make it appear more 'affordable' in the early stages of the 'planning process'. Thus in 1995, the Outline Business Case for a new hospital was approved, the size of the hospital being then 701 beds. Following the approval, by June 1996 the proposed figure had risen to 809 beds. In 1999 it has risen to 953 beds and then in 2003, the number of beds rose to 989 (see Appendix A1.7). According to the NNUH website, there are now 987 beds, a reduction of 18% on the 1207 beds of the two old hospitals.

As a result there seems to have been a deliberate decision to keep the size of the hospital down so as to make it more 'affordable' as a PFI contract. Thus it seems justifiable to 'charge' the PFI contract with any extra cost of treatment having to be purchased from private hospitals in the region.