We recommend:
(1) that the Committee of Public Accounts ensure that a proper, in-depth evaluation of NHS LIFT is undertaken, with due regard to quantitative data, and with respect to:
- value for money (as compared with other financing options, whether these are real or theoretical);
- the quantum of risk transferred to the private sector;
- the rate of return to private sector investors;
- affordability; and
- the effect of joint venture companies on public sector governance.
(2) that the Committee request from the NAO the financial models from the Department of Health that were given to Operis as part of its inquiry, and that these should be published. Included in the models we would expect to see:
- affordability calculations;
- income streams;
- anticipated sources of income (revenue-sharing arrangements);
- risk premium;
- rates of return;
- value for money calculations (Net Present Value and cash); and
- the apportionment of risk and liabilities in the event of project failure.