public dividend capital
public dividend capitalA form of long-term government finance which was initially provided to NHS trusts when they were first formed to enable them to purchase the Trust’s assets from the Secretary of State. Public dividend capital (PDC) represents the Department of Health’s (DH’s) equity interest in defined public assets across the NHS.
The DH is required to make a return on its net assets, including the assets of NHS trusts, of 3.5%. For NHS trusts, that takes the form of a variable charge—a PDC dividend—paid twice yearly. Repayments of PDC are made only when the trust has surplus cash—e.g., land sales proceeds not spent on new capital assets. The PDC of an NHS trust applicant for NHS foundation trust status, immediately before authorisation is granted, will continue as PDC under the same conditions for the NHS foundation trust.