The Norfolk and Norwich University Hospital (NNUH) is a National Health Service academic teaching hospital located on the Norwich Research Park off the A11 road and the Watton Road (B1108) on the southern outskirts of Norwich, England. The university hospital replaced the former Norfolk and Norwich Hospital, which was founded in 1771, and the West Norwich Hospital. The Norfolk and Norwich University Hospital was built under the Private Finance Initiative (PFI), and opened in late 2001: it has 987 acute beds and offers a wide range of NHS acute health services plus private patient facilities. It is one of the largest hospitals in the United Kingdom in terms of in-patient capacity. The hospital is part of the Norfolk and Norwich University Hospitals NHS Foundation Trust. NNUH was the first new NHS teaching hospital built in England for more than 30 years and the hospital trust is a joint venture partner in the University of East Anglia School of Medicine, Health Policy and Practice.1 The hospital is a teaching centre for nurses (adult and children's), midwives, doctors, therapists and operating department practitioners.
ConstructionOn January 11, 1998, Prime Minister Tony Blair announced the go-ahead for the construction of a £214 million, 809 bed, new hospital in a broadcast from Tokyo on the BBC's Breakfast with Frost show. 2 Site work started the following day (January 12, 1998). The project was the first large PFI hospital scheme in the NHS. In July 2000 approval was given to extend the Norfolk and Norwich University Hospital with a second phase that included an additional 144 beds and took the project cost to a reported £229 million. The Norfolk and Norwich University Hospitals NHS Foundation Trust pays the private PFI Octagon consortium in the region of £41 million a year 3. In 2004, the Association of Chartered Certified Accountants assessed the actual costs at £1.16 billion, or around five times the initial cost of £229 million. Project team:4
The hospital was completed in August 2001, five months ahead of schedule, and on budget4. The hospital won the Building Better Healthcare Award 5 for Best Designed Hospital in September 2002. The Norfolk and Norwich University Hospital was also highly commended in the Commission for Architecture and the Built Environment Prime Minister's Better Public Building Award in 2002 6. ControversyThe controversial Private Finance Initiative was first introduced to the public sector under the Conservative government of John Major and the contract for NNUH, one of the first PFI hospitals, was signed in 1996. The level of subsequent potential risks and costs borne by the public sector was thought by some critics of the deal to be unacceptably high. In 2006 Edward Leigh, Conservative Member of Parliament (MP) and chairman of the Public Accounts Committee, appropriated a famous Edward Heath quote (originally used with reference to Tiny Rowland of Lonhro International7) to describe the Department of Health's approach to a refinancing deal for the NNUH PFI: "It is hard to escape the conclusion that the public sector staff managing the project were not up to the rough and tumble of negotiating refinancing proposals with the private sector ... The unacceptable face of capitalism."8 The hospital neighbours the constituency of South Norfolk MP Richard Bacon, also a member of the Public Accounts Committee. Mr. Bacon wrote about the financing of the hospital on his website; "The Department of Health would not allow the hospital to include a refinancing clause in the original contract. This meant the hospital had no right to receive any proceeds from the refinancing at all, let alone the 29% share it eventually secured. And that right was only obtained by taking on huge extra potential liabilities."9 In 2006/07, the trust projected a savings target of £14.8 million but recorded a surplus of £867,000 by the end of the same financial year.10. In 2007, the Audit Commission's "Review of the NHS financial year 2006/07" reported that the trust was delivering the best financial management of any NHS Trust in the country11 In 2006, the Public Accounts Committee released report into the PFI refinancing conducted by the private Octagon Healthcare consortium involved in building the Norfolk and Norwich University Hospital of "lining investors' pockets" and putting the trust at increased financial risk. The report noted that the consortium was receiving an over 80 million pound windfall from the deal, and the National Audit Office said that the windfall was the third it had uncovered after complaints from MPs and the public12. People and NNUHThe Norfolk and Norwich University Hospital has been visited by a number of notable people in public life; - September 1998, Secretary of State for Health Frank Dobson unveiled a plaque marking foundation work on the Norfolk and Norwich University Hospital13 References
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