A consortium including Alfred McAlpine and WS Atkins has closed the £450m private finance initiative deal to redevelop Hereford County Hospital.

The consortium, Mercia Healthcare, also includes Gardner Merchant and Charterhouse Project Equity Investments. Under the 30-year contract, it will build and operate new and refurbished hospital facilities for Hereford Hospitals NHS Trust.

A three-year programme aims to transform the 340-bed hospital into a major hospital for the region.