Huntingdon MP Jonathan Djanogly says Circle's decision to pull out of their contract running Hinchingbrooke Hospital was a shock and a shame.
However he says unions and other critics of privatisation had used the hospital as a "political football".
Circle was the first private healthcare operator to run an NHS hospital trust. It is pulling out claiming it is "no longer sustainable" due to funding cuts and pressure on its casualty department.
Click below to watch Matthew Hudson's full interview with Jonathan Djanogly MP
The first private healthcare operator to run an NHS hospital trust is to pull out of the deal, claiming it is "no longer sustainable" due to funding cuts and pressure on its casualty department.
Circle Holdings said the level of cash it had pumped in to prop up Hinchingbrooke healthcare trust in Cambridgeshire was about to reach £5 million, meaning it would have the right to terminate the franchise.
A Department of Health spokesman said: "We're disappointed Circle has made this decision.
"There will now be a managed transfer of the running of the trust and patient care will not be affected."
The Chief Executive of the Circle Partnership, a private company which runs Hinchingbrooke Hospital in Huntingdon says its future with the NHS hospital is 'unsustainable' and that 'with great regret' it is looking to withdraw from its contract.
"After considerable thought and with great regret we have concluded that Circle’s involvement in Hinchingbrooke does not have a sustainable future in its existing form, and have entered into discussions with the Trust Development Authority with a view to withdrawing from the current contract."
Circle took over the running of Hinchingbrooke in 2012 making it the only NHS hospital to be run privately in the UK.
The Chief Executive also said that times have changed since they took over the contract.
"Like most hospitals, over the past year we have seen unprecedented A&E attendances – at times up to 30% higher, year-on-year - and not enough care places for healthy patients who await discharge. Second, at the same time, our funding has been cut by approximately 10.1% this year. With these pressures on the system, to maintain the standards our patients deserve requires significant further investment, on top of the £4.84 million and considerable resources Circle have invested in the hospital to date."
The company behind UK's only privately run hospital in Cambridgeshire is to pull out of its contract.
'Circle' has been running Hinchingbrooke Hospital in Huntingdon since early 2012.
Today the company said that 'with regret we have concluded that Circle's involvement in Hinchingbrooke does not have a sustainable future in its existing form and have entered into discussions with a view to withdrawing from the contract.'
Hospitals across the country have been struggling to cope after being inundated with patients.
Some have put themselves on various states of alert.
ITV News Anglia has contacted all the major hospitals in our region, and this is their current state of alert:
- Addenbrooke's Hospital: Major Incident
- Peterborough City Hospital: Internal Major Incident
The Queen Elizabeth Hospital, King's Lynn: Internal Black Alert
Basildon and Thurrock Hospital: Internal Black Alert
Norfolk and Norfolk Hospital: Black Alert
Southend University Hospital: Black Alert
Milton Keynes Hospital: Black Alert
West Suffolk Hospital: Black Alert
Bedford Hospital: Significant Incident
The Princess Alexandra Hospital, Harlow: Significant Incident
Colchester Hospital: Red Alert
Kettering Hospital: Red Alert
Northampton Hospital: Red Alert
West Hertfordshire Hospital: Red Alert
James Paget Hospital: Red Alert
Ipswich Hospital: Amber Alert
Luton and Dunstable Hospital: No Alert
Hinchingbrooke Hospital: No Alert
Broomfield Hospital: Awaiting response
A care home from Ipswich has become the first to be given an 'outstanding' rating by the Care Quality Commission.Read the full story ›
Addenbrooke's Hospital in Cambridge became the latest hospital to activate a major incident plan to cope with the surge in demand.Read the full story ›
Figures released today reveal the worst figures for dealing with accident and emergency patients in a decade.
For the second time in a week, the Norfolk and Norwich University Hospital has declared a major internal incident because of the pressure it's facing and has cancelled some routine operations.
Just two of the hospitals in the east of the region have met the Government's target of dealing with patients within four hours
Click below to watch our report from Malcolm Robertson.
Accident and emergency departments are being pushed to breaking point by increased winter demand.
Figures out today show many hospitals in our region are failing to meet Government targets of treating patients within a four hour deadline.
At Addenbrookes' Hospital in Cambridge only three quarters of patients were seen within that time.
Click below to watch Sarah Cooper's report on how hospitals in the west of the Anglia region are coping with the pressure.
An A&E doctor has blasted time-wasting patients telling ITV News many don't even need to bother their GPs with their 'illnesses'.Read the full story ›