Health Service providers not entitled to reimbursement for interest on acquisition loans

Court of Appeal refuses appeal and upholds High Court's decision that health service providers are not entitled to reimbursement for interest accrued on loans taken out for the acquisition of hospital facilities, on the grounds that the interest costs incurred from the acquisition loans did not relate to the "ongoing operation and functioning of the facility" as required by the Heads of Terms agreement; and consequently, these costs were not considered operational costs eligible for reimbursement under the agreement.