1 May 2001

Support services group Interserve Plc, through its Facilities Management operations, today finalised a PFI project contract with Dudley Group of Hospitals NHS Trust in the West Midlands.

Interserve, as part of a consortium, in which it has an equity stake, will be responsible for the re-development and partial re-construction of the Trust's acute hospital services at the Russells Hall site. This will provide 760 beds, approximately double the current number. In addition, two new day-care centres at the existing Guest and Corbett Hospital sites will be provided.

  "extensive expertise ... for hospitals support"    

Interserve will be responsible for facilities management for a period of 40 years with a whole life present value of £530 million. This will entail providing a broad range of non-clinical support services, both during the interim period and once the construction phase is complete. Services to be provided include estates management, portering, cleaning, catering, sterile services, laundry, security, health records, telecommunications, transport, residential accommodation, medical engineering and waste management.

Under the contract around 900 NHS staff will transfer to Interserve's operations in two phases in May and July this year.

Commenting on the announcement, Mike Bottjer, chairman of Interserve Plc said: "This award recognises the extensive expertise we have acquired for hospitals support services and the management of transfers of large public sector workforces. We are confident we possess the appropriate balance of skills to deliver tangible benefits to the Trust and to the local people who will use the hospital facilities."