Damning report on hospital decisions

The Department of Health came under attack today after a report criticised a decision to build Peterborough's new hospital and put Hinchingbrooke Hospital in private hands.

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Two hospitals told finances 'unsustainable'

Crisis in the NHS, as two hospitals in the East are told their finances are unsustainable. Peterborough Hospital is paying a million pounds a week under its PFI agreement, while the private company running Hinchingbrooke Hospital in Huntingdon has failed to make the savings it had hoped.

The MP for Peterborough, Stewart Jackson was a member of the Public Accounts committee set up to look into NHS finances. Matthew Hudson has sent this report.

Critical report on decisions over two local hospitals

Hospital decisions criticised Credit: ITV Anglia

The Department of Health came under attack today after a damning report criticised a decision to build a new hospital and award a franchise to a private firm to run another one a few miles away.

The Department of Health came under attack today after a damning report criticised a decision to build a new hospital and award a franchise to a private firm to run another one a few miles away.

The Commons Public Accounts Committee said there had been a "complete lack" of strategic oversight over the building of a private finance initiative hospital in Peterborough and allowing Circle Healthcare to run the nearby Hinchingbrooke Hospital.

The decision left two hospitals whose financial viability and future was in doubt, said the committee.

Stewart Jackson, Conservative MP for Peterborough, and a committee member, said the strategic management of health resources across the East of England Strategic Health Authority had failed.

"Ultimate responsibility for this rests with the Department of Health," he said.

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