Burnley and Padiham MP Gordon Birtwistle has backed moves by East Lancashire hospital bosses to "buy out" the PFI contracts under which new local hospitals were built in 2006.
Current estimates are that the hospital trust will end up repaying around £1 billion for buildings which cost £140 million. Last month it was announced that Northumbria health trust, with assistance from their County Council was buying out their contract and saving £3.5 million a year.
Gordon has written to Health Secretary Jeremy Hunt urging him to support such a proposal if East Lancashire decide to pursue that approach.
Gordon said, "These flawed PFI contracts were forced on the local health service by the last Labour Government. They represent a terrible deal for the taxpayer with millions of pounds going into the pockets of big city financiers rather than into local health services."
"This move by Northumbria seems like an interesting solution to the problem, and will produce significant savings that can go towards better healthcare. If East Lancashire go down this route they will get my support and I hope that Mr Hunt would support such a proposal."
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