Several new NHS trust mergers are planned, several of which involve large PFI projects:
• Peterborough and Stamford Hospitals Foundation Trusts Hospital and Hinchingbrooke Health Care NHS Trust (planned for 1 April 2017).
• Central Manchester University Hospitals NHS Foundation Trust, Pennine Acute Hospitals Trust, University of South Manchester NHS Foundation Trust
• Ipswich Hospital NHS Trust and Colchester Hospital University Foundation NHS Trust (currently holding a £75m combined deficit
• Colchester General Hospital, in special measures for two years, was declared "clinically and financially unsustainable" by the hospital board after NHS Improvement and the Care Quality Commission (CQC) inspections in early 2016 and has agreed to merge with the Ipswich Hospital NHS Trust.
• Basildon and Thurrock University Hospitals Foundation Trust will merge with Mid Essex Hospital Services Trust.
• University Hospitals Birmingham (UHB) and Heart of England (HEFT) Foundation Trusts have agreed to work together to create a single organisation, which will include Queen Elizabeth Hospital Birmingham, Heartlands, Good Hope and Solihull hospitals.
• Birmingham Women's NHS Foundation Trust and Birmingham Children's Hospital NHS Foundation Trust have formally agreed to merge the organisations in 2017. The Women's Hospital reported a £4.5m deficit for 2015/16.
Unless there is a rapid and sustainable turnaround in NHS trusts finances, continued government support for PFI projects will be essential together with financial support for PFI projects in planned mergers. A further £1,500m in additional public support for NHS trusts is likely to be required over the next 20 years.
This analysis did not take account of PFI credits for NHS trusts and local authorities, which are intended to be a contribution towards capital investment and is similar to the grant that would be payable if the project had been funded by public investment.