Go-ahead for Bart's £620m revamp

The controversial redevelopment of Bart's and Royal London hospitals was given the final go-ahead today.

The £620 million scheme for private investors to build a hospital at Whitechapel and renovate Bart's in Smithfield is the biggest of its kind ever undertaken in the NHS.

After more than a decade of fierce debate, managers were today given permission to advertise for a private financier.

Under the Private Finance Initiative, private cash will be invested and the hospital leased back to the NHS. The decision to split services over the two hospitals has been criticised by some senior doctors at the trust as unsafe.

Work will not start on the project before 2004 and is due to be completed by 2010. The dilapidated Victorian buildings at The Royal London Hospital will be demolished to make way for the new 905-bed hospital at Whitechapel and Bart's will be transformed into a 380-bed cancer and cardiac centre.

Trust chief executive Paul White said today: "Our staff are often praised for their dedication despite difficult working conditions - the new buildings will make an enormous difference to our patients, staff and the whole local community."

The deal is part of a £1.1 billion package of private investment in NHS hospitals announced by Health Minister John Hutton today. A £60 million scheme to modernise Central Middlesex Hospital was also given the go-ahead.