1 We investigated government's role in the rescue of the Midland Metropolitan and the Royal Liverpool University hospitals following the liquidation of Carillion on 15 January 2018. We reviewed:
• action by the PFI companies (The Hospital Company (Sandwell) and The Hospital Company (Liverpool)) and the two NHS Trusts (Sandwell and West Birmingham Hospitals NHS Trust and Royal Liverpool and Broadgreen University Hospitals NHS Trust) to try to resurrect the PFI contracts and complete the hospitals;
• government action (by the Department of Health & Social Care, NHS Improvement, the Infrastructure and Projects Authority (IPA) in the Cabinet Office and HM Treasury) to support the two Trusts;
• government action to negotiate a settlement with the PFI companies and finance the completion of the hospitals using public funds; and
• action by the Trusts to take ownership of the hospitals and engage with new contractors to finish the hospitals.
2 The investigation is non-evaluative. We have not assessed the viability of the business cases for the two hospitals, the viability of the construction projects if Carillion had not collapsed, or the total cost or impact of the rescue of the two hospitals against other possible outcomes.
3 We have not assessed the actions of Carillion, its directors, or its advisers.
4 We relied on information available from the public sector, since the private companies involved are either in liquidation or have had their contracts terminated. We did not have access to the lenders' or the PFI companies' internal papers, except where copies of these were held by public bodies.
5 We shared copies of our draft findings with the Department of Health & Social Care, NHS England & NHS Improvement (NHSE&I), the Cabinet Office, HM Treasury and the two NHS Trusts.