P3 hospitals in decline (but Ontario keeps at 'em)

The British Construction Products Association (CPA) is forecasting a 30 per cent fall in health sector construction work this year, followed by a 15 per cent fall next year, with further declines in 2013 and 2014.

Health construction work is expected to fall from a peak of around £5.2 billion in 2008, down to £2.4 billion in 2014, even adjusted for inflation, industry paper H&V News reports.

Kelly Forrest, CPA senior economist, put the collapse down to uncertainty over public private partnerships (P3s or, as the British refer to them, private finance initiative or PFI) .

P3s have been harshly criticized in recent months in Britain, with the National Audit Office and Parliament’s Treasury Select Committee calling them out, among others

“We think it will be a while before PFI returns to the health sector,” said Kelly.

Ontario, meanwhile is still officially planning to expand its use of P3s for hospitals.

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