NHS England is currently formulating strategies to introduce private investment into its ageing infrastructure, with claims from insiders that they are prevailing in the debate over alternative funding approaches.
As part of the government’s forthcoming 10-year NHS plan, due to be revealed in the spring, various new private finance initiatives are under consideration.
An NHS official expressed that there is growing consensus within the organisation for this shift, and resistance seems minimal.
Health Secretary Wes Streeting has shown openness to the prospect of private capital infusion into NHS facilities, provided it does not escalate Treasury borrowing.
Streeting, acknowledging the potential benefits of private finance, emphasised the need for careful consideration in forming such agreements.
Particular attention is being given to adapting Wales’ Mutual Investment Model for England, where private entities are contracted to construct and maintain public assets, with government equity not exceeding 20%.
However, concerns linger within the Treasury about the broader financial consequences of these new investment models, particularly the implications for staffing, equipment, and maintenance costs.
Current public-private partnerships in Wales are being scrutinized as potential templates for England. Despite the emphasis on new builds over maintenance—viewed as less appealing to private investors—the Treasury remains cautious.
This approach comes amid criticisms of a “broken” capital investment system, with NHS facing a maintenance backlog that has reached a record £13.8 billion.
The recent resignation of NHS England’s CEO Amanda Pritchard, who advocated for private capital investment, has sparked further debate about NHS England’s influence and its future direction under potentially tighter governmental control.
As discussions continue, the Department of Health has yet to receive formal proposals on these new funding models from NHS England.
