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£370m joy for chiefs in Sandwell super hospital bid

Hospital bosses have welcomed a new finance initiative which will see the £370 million Sandwell super hospital built, but warn it could still take more than five years to complete.

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Chancellor of the Exchequer George Osborne announced in his autumn budget statement yesterday that the new Private Finance 2 initiative is expected to be used for the scheme.

It would mean the go-ahead for the Midland Metropolitan Hospital, in Smethwick.

This comes after the scheme was put into doubt following the Treasury review of private finance initiatives.

Sandwell and West Birmingham Hospital Trust expect it to take six months to alter their plans in light of the announcement. Following approval procedures, they then expect the procurement, building and commissioning phases of the scheme to take up to five years to complete.

The 670-bed hospital on Grove Lane will replace Sandwell Hospital in West Bromwich and City Hospital in Winson Green.

In a statement following the announcement, the Trust said: "We welcome the Chancellor's highlighting of our new hospital scheme in his autumn statement.

"We see it as a positive sign of the support there is for the Midland Metropolitan Hospital concept.

"Clearly we now need to fully understand the impact of the new "PF2" finance model on our plans and will immediately begin that work to make progress as soon as possible."

Halesowen and Rowley Regis MP James Morris welcomed the news, he said: "I hope that the local NHS Trust and the Department of Health can complete their discussions as soon as possible so that work can begin on this important project."

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