34
New Hospital Programme's optimistic assumptions risk further cost overruns and insufficient funding for all schemes.
Conclusion
DHSC faces a number of specific pressures that could make cost overruns more likely. If any of the key assumptions underlying the MVP model of Hospital 2.0 prove overly optimistic or detrimental to future healthcare provision, such as the assumed 95% bed occupancy rate, then NHP may require more funding than has currently been allocated by HM Treasury.74 DHSC also told us that the current funding does not include hospitals scheduled to commence reconstruction in the 2020s but to complete after 2030.75 That would mean substantially more funding being required from HM Treasury to build the eight cohort 4 schemes that were recently delayed into the 2030s.76
Government Response
A response document is linked to this report, dated 8 March 2024. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Inquiry
New Hospital Programme
Report
First Report - The New Hospital Programme
17 Nov 2023
HC 77
Addressee Bodies
HM Treasury
Timeline
Recommendation age
2.8 yrs
Report published
17 Nov 2023