Hinchingbrooke Hospital in Cambridgeshire has run up a deficit more than twice as big as health service managers had predicted according to a new report out today.
The hospital became the first in the country to be taken over by a private company in February this year.
Circle Healthcare is managing it on a 10 year contract.
Today's report by the National Audit Office says before any more hospitals are run by private companies the Department of Health must carry out what is being called a lessons learned exercise based on what's happened at Hinchingbrooke.
A private company given the job of running a failing NHS hospital in Cambridgeshire says it's on the way to turning it around and health service managers seem to agree.
Hinchingbrooke Hospital in Huntingdon was once described by a health minister as "a clinical and financial basket case". But since Circle took charge in February, it's delivered improvements in care as well as savings.