PFI burden on hospitals

The NHS is struggling under the financial burden of large private funding initiative repayments which could see hospitals close, say ministers.

Twenty two trusts, which run 60 units, are thought to be affected with some paying out up to a fifth of their budget.

A private funding initiative (PFI) is a means of securing private investment to fund a building project, which then has to be paid back much like a mortgage.

The scheme was initially brought in by the Conservatives under John Major but was significantly expanded by Labour.

Labour: PFI was right option in 1997

NHS Confederation: Services should not be closed simply due to PFI costs

King's Fund: PFI deals causing problems for NHS

Andrew Lansley: Labour led parts of the NHS to the brink of financial collapse