Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Lang hopes to find buyer for failed Scots hospital

Nicholas Timmins
Thursday 15 December 1994 00:02 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Ian Lang, Secretary of State for Scotland, yesterday distanced himself from responsiblity for the failure of HCI, the hi-tech Clydebank private hospital into which the Government put £30m. However, he expressed optimism that a buyer would be found for the £186m white elephant.

The 260-bed hospital went into receivership last month, four months after opening, but the first sign that it was in trouble did not come until March this year, Mr Lang told the Commons Scottish Affairs select committee. Even then, he said, there were "mixed signals" . In spite of the failure to achieve targets that would have seen 6,600 patients through the hospital in a year, Mr Lang said "the banks who had invested all thought the project remained viable as late as October and November".

"The reason the receiver was called in was because one bank, Credit Lyonnais, pulled out, not because of the scheme but because of difficulties Credit Lyonnais was having nationally and internationally as a bank.

The Government's preferred solution was that a private buyer would be found and the project would realise its original objective of a hi-tech private hospital attracting patients from abroad.

Mr Lang stressed that the decision to go ahead with the scheme had not been his but those of officials and of the Scottish Industrial Development Advisory Board who recommended support for the scheme.

To date just 800 patients have been treated at the hospital. Labour and Tory MPs on the committee clashed over the cut-price and even free operations that the hospital has been providing to the NHS while in receivership. If a buyer cannot be found, it would cost at least £25m and possibly double that to convert it for NHS use, Mr Lang told MPs.

Geoffrey Scaife, chief executive of the NHS in Scotland, said the hospital was situated nine miles outside the centre of Glasgow in a "far from ideal" location with no provision for out-patients or an accident and emergency department.

The National Audit Office has confirmed that it is to look at the project and report to the Public Accounts Committee in January.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in