Regarding my last post it has been pointed out that a third explanation is that it was the policy of successive governments to use PFI for major NHS projects. While I accept that this principle was heavily promoted by government this still does not account for why such appallingly bad deals were negotiated and accepted.
They may have been forced down the PFI route but surely they could have employed normal business practices, encouraged a little competition, and driven a harder bargain.
Most of us could do far better as individuals. As an example, if you were after a personal loan would you take this one at 7.2% APR or this one at 4214% APR. Those who negotiated PFI deals seem to have had the mentality to take the latter.