February 1999

United Healthcare, a joint venture between Healthcare Group and Taylor Woodrow, has recently commenced construction of a major new hospital worth £155 million in Bromley. The hospital will open in winter 2002.

The new hospital will be funded through the Private Finance Initiative ("PFI"). It is part of the largest hospital building programme in the history of the UK National Health Service ("NHS") totalling £2.2 billion worth of investment in new hospital developments nationwide.

Healthcare Group has arranged for Barratt Homes to purchase 43 acres of redundant hospital land, the proceeds of which will be used to part-fund the new hospital. Barratt has bought three sites in Bromley, Orpington and Farnborough from Bromley NHS Trust for close to £30 million, payable in tranches as the sites fall vacant. Barratt's plans involve a £70 million project to build 600 new homes.

The new hospital development will be based at Farnborough and have over 500 beds and day case facilities, and provide a full range of acute general hospital services, bringing together hospital services previously provided from four local sites. The many outdated buildings will be replaced with modern facilities, and it will overcome many of the problems working from the current split sites.

Farnborough will also retain its existing day treatment centre and postgraduate medical centre. The Canada Wing at the Orpington site is a modern building and will be retained to provide outpatient and day patient facilities. Outpatient and day patient facilities will also be provided at Beckenham Hospital.

UK Government Health Minister Alan Milburn welcomed the news:

"The new hospital in Bromley is part of the Government's programme to modernise the National Health Service. It will provide the best new facilities for patients, and give NHS staff the best environment to deliver high quality care. I congratulate all concerned with the scheme who have worked to finalise the development."