Hospital trust to ask Government to plug Carillion hole

The stalled Midland Metropolitan Hospital project will seek Government funding to complete the “two thirds done” development, which has remained in limbo since the collapse of contractor Carillion in January.

The scheme, one of three major UK projects which was identified as significantly loss-making for the Wolverhampton group, has struggled to find a way forward.

At a meeting yesterday, Sandwell & West Birmingham Hospitals NHS Trust has decided that Government backing is now the best route forward.

The Trust tweeted: “Milestone reached today in deciding preferred option for Midland Met build. Trust Board will recommend to govt a public procurement to complete build of much needed acute hospital in 2022.”

The Trust plans to continue with a £13m investment to ensure the site does not deteriorate further, which would increase costs and timescales again.

But a private finance model, secured by a new PF2 deal, for completion of the hospital was not well received by the market.

Deloitte has advised than an unnamed contractor believes it could cost as much as £424m to finish the development, while a PF2 deal would add at least six months to the already-extended target date of 2022.