Commons committee criticises Guy's fiasco
The redevelopment of Guy's Hospital, which was allowed to “spiral out of control for nine years before any sense of realism was applied,” has been severely criticised by the House of Commons Public Accounts Committee.
The final phase of the redevelopment, which in 1986 was estimated to cost £35m ($56m), ended up costing £150m. Despite an innovative funding package, which should have found 45% of the costs from private and charitable donations, British taxpayers ended up paying for 78% of the project.
The public accounts committee highlights “serious failures” by the NHS Executive in failing to manage effectively the final part of the Guy's rebuilding programme. It says that the original estimate of £35m was “completely inadequate,” and it criticises both the Department of Health and the Treasury for approving the estimate, even though both had strong reservations about it. The unrealistic original estimate allowed the Guy's project to “secure