§ Mr. CohenTo ask the Secretary of State for Health (1) what effect including a calculation of capital charges in a business plan for a bid to build a new hospital would have on its financial viability;
(2) how capital charging has affected the planning of the building of new hospital projects.
§ Mr. DorrellThe existing methodology for appraising options for NHS building plans takes account of the costs of capital, including the opportunity cost. The introduction of capital charges will have a similar effect in appraising options.
From April 1991, when considering plans to alter service provision, provider units will also need to ensure that purchasing authorities are willing and able to meet any additional costs which may arise.