North Cumbria Integrated Care NHS Foundation Trust has confirmed it will terminate the private finance initiative (PFI) contract at Cumberland Infirmary in Carlisle, with the change due to take effect on 31 March.
The trust said the decision follows approval of a business case demonstrating that ending the contract will provide better value for money and greater control of hospital facilities.
The Trust’s official statement notes that the termination has been planned carefully to safeguard patient services and maintain staff continuity.
“We are conscious that staff working on this contract will be concerned about the potential implications. Commercial conversations are ongoing,” said the Trust in the statement.
Facilities management services currently delivered under the PFI will transition to the trust, in collaboration with the private operator, Health Management Carlisle, and its subcontractor Mitie.
The Trust said it will ensure continuity of “soft and hard” facilities management services throughout the handover period.
The trust confirmed that further updates will be provided as the transition progresses.
North Cumbria Integrated Care said the move aligns with its broader strategy to strengthen financial sustainability and operational flexibility.
NHS England, HM Treasury, and the North East and North Cumbria Integrated Care Board were all involved in reviewing and approving the business case.
Cumberland Infirmary, which opened in 2000, was originally built and maintained under a PFI arrangement combining construction and long-term facilities management through a private sector contract.
The trust’s decision comes as the NHS continues to review the long-term impact of PFI arrangements on hospital estates and finances, with lessons from previous schemes informing new approaches to infrastructure funding.