Private finance initiatives and outsourcing of facilities management in UK hospitals.
A substantial share of hospital expenditure is devoted to hard facilities management in building maintenance, and soft services such as catering, cleaning, laundry, waste management, and security. This article examines how these services are delivered—insourced or outsourced—under traditional procur...
| Publicado en: | Oxford Economic Papers Vol. 78; no. 2; pp. 585 - 612 |
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| Autores principales: | , |
| Formato: | Artículo |
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Oxford University Press / USA
Apr2026
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=194211920&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 194211920 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00307653 OXE jtl: Oxford Economic Papers issn: 00307653 maglogo: N pubinfo: dt: Apr2026 vid: 78 iid: 2 pid: 622 pub: Oxford University Press / USA artinfo: ui: 194211920 10.1093/oep/gpag009 ppf: 585 ppct: 27 formats: tig: atl: Private finance initiatives and outsourcing of facilities management in UK hospitals. aug: au: Podaneva, Alena Picard, Pierre M affil: Centre for Health Economics, University of York, Heslington, York, YO10 5DD, United Kingdom Department of Economics and Management, University of Luxembourg, 4, rue Alphonse Weicker, Luxembourg, L-2721, LuxembourgCORE/LIDAM, UCLouvain, Voie du Roman Pays 34, Louvain-la-Neuve, B-1348, Belgium su: United Kingdom Private Finance Initiative Hospitals Facility management Contracting out Quality of service Hospital costs Corporate purchasing Operational risk Public-private sector cooperation sug: subj: Hospitals United Kingdom Private Finance Initiative Lessors of Nonresidential Buildings (except Miniwarehouses) General Medical and Surgical Hospitals General (except paediatric) hospitals Facility management Contracting out Quality of service Hospital costs Corporate purchasing Operational risk Public-private sector cooperation keyword: bundling copyrightHolder:Oxford University Press copyrightYear:2026 D86 facilities management services foundation trusts hospitals I11 I18 incomplete contracts inLanguage:en L32 moral hazard outsourcing private finance initiatives publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/oep/gpag009 bundling copyrightHolder:Oxford University Press copyrightYear:2026 D86 facilities management services foundation trusts hospitals I11 I18 incomplete contracts inLanguage:en L32 moral hazard outsourcing private finance initiatives publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/oep/gpag009 ab: A substantial share of hospital expenditure is devoted to hard facilities management in building maintenance, and soft services such as catering, cleaning, laundry, waste management, and security. This article examines how these services are delivered—insourced or outsourced—under traditional procurement and Private Finance Initiative (PFI) arrangements. We show that PFIs create incentives to internalize externalities between construction and maintenance while encouraging outsourcing to specialized providers to mitigate operational risks. Under traditional procurement, builders' warranties generate reverse moral hazard by increasing their exposure to future maintenance problems. The analysis characterizes the choice between PFIs and traditional procurement as a trade-off between moral hazard arising from outsourcing, warranty provisions, and operational risks associated with maintenance and soft services. PFIs are preferred when hard facilities management risks are either very low or very high, whereas traditional procurement is optimal when service quality is critical, maintenance risks are moderate, and warranties are limited. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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