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New Glasgow hospital will be publicly funded

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Scotland’s largest ever hospital building project will be funded entirely with public money, not with controversial Private Finance Initiative cash, first minister Alex Salmond has announced.

The Scottish Government has approved the outline business case for the £842m project that will create a integrated children’s and adult hospital built on the site of the existing Southern General Hospital in Glasgow.

The proposal will create a 1,109 bed adult hospital, providing acute inpatient care, some medical day cases and outpatient clinics, alongside a 240 bed children’s hospital with an A&E unit and inpatient and paediatric services.

At the STUC conference in Inverness, Mr Salmond said: ‘By funding the entire project through public finance, we are ensuring it is deliverable, affordable, sustainable and represents best value for money for the taxpayer.’

Health board NHS Greater Glasgow and Clyde is providing £270m towards the project, with £20m from locally held endowments and the balance of £552 provided by the Scottish Government.

PFI initiatives, which are like giant mortgages for hospitals, have been criticised as they have left some trusts with deficit problems.

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