Is the Welsh Government trying to hide the fact that it is building a £120m ‘health park’ that will be run by the private sector?

Martin Shipton

The Welsh Government has been accused of trying to disguise the fact that a new £120m diagnostic centre branded as a “health park” will be operated by a private sector company.

Planning permission was granted in September 2025 for the construction of a regional diagnostic and treatment hub on land near the Royal Glamorgan Hospital at Llantrisant in Rhondda Cynon Taf. It will be located at the former British Airways avionics engineering building at Gwaun Elai industrial estate

However, none of the information about the project in the public domain, including reports from Cwm Taf Morgannwg University Health Board, makes it clear that diagnostic activity will be contracted out to a private company.

The suggestion is that Welsh Labour has from the dawn of devolution presented itself as a party opposed to any moves that could be construed as privatising the NHS.

A well-placed source told Nation.Cymru about the private sector’s involvement in the project, and that has now been confirmed by the health board.

The development, which has been funded by the Welsh Government to address planned care waiting lists, will provide day surgery and orthopaedic theatres, endoscopy, wards, MRI and CT scanning and ultrasound facilities.

The planning report considered in September said although consideration was given to adapting the vacant buildings, it was apparent the internal layout would not lend itself to the new use and the structural capacity was physically insufficient.

In recommending approval, planning officers said: “The proposed development represents a significant investment in public healthcare, to address local and regional diagnostic and treatment needs.

“The site is ideally positioned, close to the existing Royal Glamorgan Hospital and associated related facilities within the adjacent business park.

“In addition, the bespoke, fit-for-purpose development would be of a similar scale to the buildings which previously occupied the site and due to its location, would benefit from excellent transport links to the highway network and an established, frequent bus service.

“Whilst the loss of an industrial employment site would normally be of some concern, in this case there is a large alternative site allocated for employment a short distance to the north.

“Therefore, it is considered that the proposed health park would be compliant with local and national planning policy requirements in addition to the well-evidenced need for the development.”

‘Much-needed’

One councillor said at the meeting that the plans looked “fantastic”, and that what was proposed was a much-needed facility.

But a well-placed source told us: “Are you following the story of the proposed new NHS Wales building(s) in Llantrisant? If not I suggest you should look into the details of it, as it is not as it may seem from the comms coming out of the health board.

“It is, as I see it, a politically led vanity project with high capital costs and a low quality outcome, with the private sector being employed to run the diagnostic centre. To put the proposed scheme in some context, NHS Wales are considering spending £120m to build a large clinic for a private sector operator to treat NHS patients – and make loadsa money.

“The project is fast tracked to gain all approvals and start in construction before the Senedd election in May as a Labour good news story.

“The abbreviation: ISP – Independent Sector Provider – is noted in the glossary to a health board report that is in the public domain. However this document is not for the currently planned Phase 1 diagnostic centre but for the ongoing Phase 2 (and 3) work which comprise the orthopaedic and day surgery facilities. So the term is not used in the report. I could not find any others which refer to phase 1 – the diagnostic centre which is, I understand, planned to be staffed by an ISP (and also part fitted out).

“I doubt this second phase will ever go ahead though due to costs, and lack of NHS staff availability. It is worth noting the apparent lack of interest from Cardiff and Vale and Aneurin Bevan health boards in taking a lead role in this project, which the report notes is a ‘partnership’.”

Competitive tendering process

We contacted the Welsh Government and Cwm Taf Morgannwg University Health Board saying we had been told that the diagnostic services being provided at the soon-to-be-built health park would be supplied by a private sector provider and that a competitive tendering process had been completed.

We said we also understood that an accelerated construction process would be used which would cut down on the opportunities for local labour to be involved.

We added: “The private sector involvement does not seem to have been mentioned in publicity material for the project. Why is the private sector involved and why hasn’t its involvement been made clear?”

We asked to be provided with details of the contract and the identity of the private sector provider.

A spokesperson for the Welsh Government said: “This is one for the health board to respond to.”

A spokesperson for Cwm Taf Morgannwg University Health Board said: “The development of the Llantrisant Health Park marks an exciting step forward in the way that health care services are delivered in south east Wales.

“Following an open and competitive tender process, specialist healthcare construction company MTX has been appointed as the main contractor for the off-site modular build. MTX has actively engaged with the local supply chain throughout the procurement process, holding discussions with key local contractors. They hosted a successful ‘meet the buyer’ event at the health park site, engaging local contractors, a number of whom have since submitted proposals for future work. Approximately 50% of the project’s total value is targeted to be spent locally with the company committed to supporting local suppliers and apprenticeships.

“The procurement process for the provision of diagnostics services for the health park is ongoing.”

Royal Alexandra Hospital

Our source responded: “MTX who are also delivering a new clinic at the Royal Alexandra Hospital in Rhyl. You can see from their website they are a family owned business with an annual turnover of £154m.

“As far as local labour is concerned, as the project is being built off site the majority of this will be in ground work and final handover trades such as decorating. I understand the framework chosen to appoint them was one hosted by NHS England. There are no substantive Welsh modular contractors capable of this size project, so it was bound to go to a company outside Wales.

“Re the ISP. I understand that a preferred private sector partner has been identified following a tendering exercise, but they have yet to be appointed and I assume therefore the information has not been made public as yet. So strictly speaking the process is not over. But it is very close to being.

“It would be interesting to know where the ISP is to source their team to run it.”