Financial Times FT.com

NHS buyback deal could cost £187m

By Nicholas Timmins, Public Policy Editor

Published: March 7 2008 03:34 | Last updated: March 7 2008 03:34

The National Health Service will have to pay out £187m ($376m) to buy back 14 of the independent sector treatment centres if their five-year contracts are not renewed, the Department of Health has acknowledged.

The “residual value obligations” are part of the deal for the £1.5bn programme to provide extra operations for NHS patients, and were needed, along with guarantees of patient volumes, to attract new entrants into the NHS market, according to the department.

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