Friday, 9 January 2015
Hinchingbrooke Hospital: Circle to withdraw from contract
A company which became the first private firm to manage an NHS hospital says it wants to "withdraw from its contract".
Circle Holdings, which operates Hinchingbrooke Hospital in Cambridgeshire, said its franchise is "no longer viable under current terms".
The move comes amid funding cuts and pressure on the casualty department, Circle said.
The Department of Health said it was "disappointed" in the decision.
Circle took on Hinchingbrooke in early 2012, as it faced closure.
It said there had been unprecedented increases in accident and emergency attendances, a lack of care places for patients awaiting discharge, and that funding had been cut by 10.1% this financial year.
Circle has made payments to the trust totalling about £4.84m and could be required to make a final support payment of approximately £160,000, the firm said.
Under the terms of its 10-year contract it has the right to end the franchise if the amount of money it has to put in to the trust exceeds £5m.
Chief Executive Steve Melton said: "This combination of factors means we have now reluctantly concluded that, in its existing form, Circle's involvement in Hinchingbrooke is unsustainable."
Circle chairman Michael Kirkwood said the decision had been made "with regret and after considerable thought".
More on this story here.
So, it looks like a case of if we can make a profit we want it, but if Circle have to invest their money they want out. More phoney capitalism from Camerons goons. Did you spot "funding had been cut by 10.1% this financial year" Cameron says the Tories have put more money into the NHS, more lies.