Website of the Department of Health

HM Treasury Value for Money assessment guidance

In August 2004 the Treasury introduced a new approach to appraising the value for money of procurement through the Private Finance Initiative (PFI) compared with conventional public capital procurement. This involves undertaking qualitative and quantitative value for money assessments at Outline Business Case (OBC) stage and also a new qualitative value for money assessment between OBC and the Final Confirming Business Case (F(C)BC).

Guidance for the NHS was first produced by DH in 2005 after a consultation period - this is now superseded. Treasury changed its own guidance in 2006 and 2007, mainly involving detailed changes in the qualitative assessment, while the quantitative assessment remains fundamentally unchanged save for changes in format and presentation. These have now been incorporated into the new DH guidance and accompanying quantitative VFM model in Excel. 

• Treasury's Value for Money Assessment for PFI: guidance for NHS build schemes