Patricia Hewitt, the health secretary, gave the green light yesterday to plans for seven new hospitals to be built under the private finance initiative at a cost of £1.5bn.
A disused wing of Ashworth special psychiatric hospital on Merseyside is to undergo a £19mconversion in an attempt to cope with a renewed surge in jail numbers.
The government concedes patients should be allowed a veto on information about their medical history being passed from their GP to a national database.