Private Firm First To Take Over Hospital

A private, listed firm has become the first company to take over the running of an NHS Hospital.

The landmark and controversial £1 billion deal will see the firm Circle undertake a 10-year to run Hinchingbrooke hospital in Huntingdon, Cambridgeshire, from 1 February 2012.

Circle will assume the financial risks of making the hospital more efficient and paying off its debts but the hospital will stay in the NHS.

The company must maintain all levels of services, although unions fear staff numbers could be cut.

Circle was chosen as the preferred bidder to run the Trust in November 2010 following a thirteen month procurement process, which began in October 2009.

The announcement follows an "extensive period of scrutiny" according to the Department of Health, ensuring the 'franchise' will provide the best outcome for patients, the local community and staff working at the Trust.

Nigel Beverley, Interim Chief Executive for Hinchingbrooke Health Care NHS Trust, said: “We have been encouraged by Circle’s enthusiasm, and the efforts they have taken to meet with staff, patients and our other partners. Circle recognises our achievements at the Trust and we look forward to working with them to develop the hospital’s services into the future.”

Ali Parsa, Circle’s Chief Executive, added: “At a time when some healthcare commentators say the solution for small district general hospitals is simply to merge or be shut down, we believe NHS Midlands and East’s courage and zeal for innovation will enable us to show how clinician and staff control can provide a more sustainable alternative.

"Our partners have now met hundreds of Hinchingbrooke staff, and we know that we share a core value of prioritising patients above all else. Circle arrives not with a top-down plan to impose change, but with a proven methodology of unleashing NHS professionals' talent through clinical leadership and devolved decision-making”.

Although private sector firms already operate units that treat NHS patients - such as hip replacement centres - the firm will become the first non-state provider to manage a full range of NHS district general hospital services.

Hinchingbrooke hospital is one of about 20 hospitals in England which has faced an uncertain future, and the possibility of closure, because of long-term financial problems.

(DW)