This morning, it was announced that Circle is withdrawing from the contract under which it manages Hinchingbrooke, the UK’s first privately run NHS hospital. Announcing the withdrawal, which is permitted by the terms of its contract, Circle said: “There have been significant changes in the operational landscape for NHS hospitals since the contract was originally procured in 2009, including unprecedented increases in accident and emergency attendances, insufficient care places for patients awaiting discharge, and funding levels that have not kept pace with demand.” Circle explained that, to keep the hospital running, it has so far paid out £5m more in costs than it has received in revenue, the point at which a contractual clause allows it to exit the deal. Circle will need to make a final support payment of £160,000 to the hospital, and is liable for costs resulting from the termination of the contract, though these are capped at £2m. The blame games are likely to start immediately. Andy Burnham, Labour’s Shadow Health Secretary, will argue it is both further evidence of an NHS crisis and confirmation that his own policy position – which is broadly sceptical of the benefits of private involvement in the NHS – is […]
Public Sector Blogs
