NHS could borrow £10BILLION from hedge funds to help pay for hospital repairs
Health bosses say low interest rates are a 'golden opportunity' as they slam 'rigid borrowing rules' preventing action
THE NHS could borrow up to £10billion from hedge funds to finance hospital repair and infrastructure projects.
Health chiefs claim low interest rates mean the NHS has a “golden opportunity” to create an infrastructure fund with private cash to which local services can apply.
Senior NHS executives have been thrashing out a possible agreement with a number of hedge funds, reported.
Jim Mackey, chief executive of the financial regulator NHS Improvement is due to meet treasury officials on Monday to urge them to sign off the private borrowing plan.
Mr Mackey told the Times: “We have to be realistic because we are not going to get a £10 billion cheque to pay for all the transformation under way and the massive maintenance backlog, so we need to think long and hard about another way.
“Historically low interest rates are a golden opportunity for the NHS but we are constrained by rigid rules around borrowing that prevent us from taking action.”
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Mackey went on to say an NHS fund could "power the improvement" needed to fix problems in hospitals and prepare the NHS for future difficulties.
Health unions have called the discussions a “cry for help” from managers.
Hedge funds are investment companies - some of which are known for aggressive strategies.
But the NHS could expect to receive similar interest rates to the 1.1 per cent available to the government for 10-year loans.
Simon Stevens, the head of NHS England, says billions of pounds are needed for buildings, equipment and IT systems to create his vision of tests and specialist care at GP surgeries.
He also wants to create rapid-response teams to keep elderly people out of hospital and better services for cancer and mental health.
The NHS chief has agreed not to ask for more day-to-day funding after a row with Downing Street earlier this year.
Negotiations in Whitehall are now focused solely on cash for infrastructure.
While ministers have accepted the NHS is in need of private funding after an initial review found it is short by £10billion, they expect public money and land sales to fill the shortfall.
Jonathan Ashworth, the shadow health secretary, told the Times: “It’s shocking that NHS leaders are in secret negotiations with hedge fund bosses.”
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