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£280m plus VAT: the average cost of a fully-equipped new UK district hospital

This article was originally published in Clinica

Executive Summary

A new 418-bed hospital, fully equipped with operating theatres, A&E, pathology and radiography, among other support services, costs approximately £280m ($425m), excluding value-added tax (VAT), in England. Health minister Ben Bradshaw revealed the cost to parliament on April 30 and said that the "indicative cost of building a medium-sized general acute hospital" reflects the current business case approval information. The amount comprises capital construction and equipment costs and professional fees. Hospital-building costs have come under scrutiny in the light of government plans to establish a network of smaller community hospitals, backed by large general practices – so-called super-surgeries – replacing some district hospitals.

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