Private Firm to Run NHS Hospital
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November 10, 2011 TheFreshOutlook  |
It is a “momentous day,” says NHS director, as first general hospital is handed over to a private healthcare firm.
After months of deliberation, a private healthcare firm has finally won the right to take charge of Cambridgeshire’s Hinchingbrooke Hospital. The decade-long deal has cost the firm £1bn and is the first of its kind in NHS history.
Circle Healthcare will take control of the hospital in February 2012 and have promised to maintain all general services. The firm also hopes to introduce a “mutual” module to Hinchingbrooke, meaning that 49% of its ownership will remain in staff hands.
Speaking on Thursday, Circle’s chief Ali Parsa said he wanted to adopt a “John Lewis-style module” where all those who work for the hospital were “in charge of the hospital”.
Mr Parsa added: “We will try everything we can to make this small hospital viable – if we can how fantastic would that be?”
Many have labelled this a “momentous day” as Circle can and will clear Hinchingbrooke’s mountain of debt – which currently stands at £40bn.
“This is a great day for the people of Huntingsonshire,” said Dr Stephen Dunn, director of policy and strategy at NHS Midlands and East. “It ends the uncertainty that has hung over the hospital for nearly five years.
“Patients will continue to receive high quality NHS services from NHS staff in the NHS hospital they know. This is not a privatisation…This is a change in management – not a change in services.”
Hinchingbrooke will stay an NHS hospital; however, many fear that Wednesday’s deal will pave the way for “whole scale” transfers and privatisation. According to reports, around 20 NHS hospitals are in financial crisis throughout the UK and could easily be targeted and bought-out by private firms, such as Circle.
Labour have accused the government of “actively” encouraging franchise deals as they continue their proposed ‘shake-up’ of the NHS.
In addition, shadow health minister Liz Kendall said people were “deeply worried” over the deal and concerned about the “future of the NHS”.
However, the British government have denied Labour’s allegation and maintain that today’s deal did not provide a “blueprint” or promote privatisation.
By Catherine Rees
[Image courtesy of Trojan631]
