Tuesday 13 January 2015

Circle's withdrawal from Hinchingbrooke hospital is no cause for celebration

Circle's withdrawal from Hinchingbrooke hospital is no cause for celebration The failing privately-run NHS hospital is back in public hands, but those celebrating another outsourcing fiasco are missing a larger problem

The announcement that Circle has withdrawn from its contract to run Hinchingbrooke hospital after the Care Quality Commission put it into “special measures” has predictably delighted those who are against outsourcing NHS services to the private sector.

But patients and the public should not rejoice at Circle’s decision. The hospital was in a financial mess and faced with closure when Circle took it over three years ago. Its debts were £39m on a turnover of £73m and Circle agreed to eliminate the debt and leave the NHS with several million pounds to spare. It planned to achieve this by reducing running costs by 5% a year, a total saving of £311m over the 10-year contractContinue reading... The Guardian

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