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.'
A wedding planner who took money from 19 different couples has been jailed for two years. Lisa Harrison from Earith, Cambridgeshire pleading guilty to offences of fraudulent trading under section nine of the Fraud Act, 2006.
The investigation, led by Huntingdonshire’s serious crime team, began with Harrison’s arrest on 18 December 2013 and concluded this week with her sentencing.
Harrison, who suffered with a gambling addiction in 2012, began taking money in the summer of 2013 and used inducements of low currency rates on US dollars and flight upgrades to secure further payments from her victims, to the sum of £80,107.35.
The 34 year-old went on a gambling spree spending £77,933 on online gambling sites including Paddy Power and William Hill, after eventually coming clean to her customers, via email, telling them that she was closing the business due to gambling away all of the money.
This was an extremely distressing case for the 19 couples who lost life savings and had their dream day ruined by Harrison.
I hope the victims received some comfort in the prison sentence imposed on Harrison, meaning they can now start to re-build their lives.
Road improvement work on a three-mile section of the A1(M) in Cambridgeshire to start a week later than scheduled because of a shortage of construction material.
The Highways Agency says the re-surfacing work on the southbound carriageway between Peterborough and Huntingdon will now start on Thursday 11 September.
The work is at Sawtry, between junction 15 and 14, near Glatton Ways and Wheatsheaf flyover, and is due to be completed in a month.
“The current surface is worn and needs replacing to ensure that users of the A1(M) in this part of Cambridgeshire can continue to enjoy safe, smooth and reliable journeys."
A rare fenland beetle thought to be extinct in the East has been discovered at a nature reserve in Cambridgeshire.
The tansy beetle's been found at Woodwalton Fen National Nature Reserve near Huntingdon. It hasn't been seen since 1973. The site's all that remains of a huge wetland around Whittlesey Mere which was drained in 1851.
A body has been found following a search and rescue operation in Huntingdon to find a boy who went missing in the river.
It's thought he had been playing with friends in a field close to Church Lane in Hartford yesterday afternoon.
Cambridgeshire Police have confirmed the body was found in the early hours of this morning just after 02:00am. They say the death is not being treated as suspicious and will be passed onto the coroner.
Girls from St Ivo School in Huntingdon have just been crowned the national Under 12's champions after winning the final 2-0 at Bisham Abbey.
It's the first time the competition has been run. The youngsters battled through eight rounds to eventually reach the final against Grey Coat Hospital School from West London.
Thieves stole a go kart from a school at Huntingdon in Cambridgeshire. They took the kart, which has a Honda 160CC engine and a steel frame with red pads and seat, from The County School, in Mayfield, between 11am on June 18 and 9.15am on Monday (June 23).
Detective Constable Owen Hurley said: "This is quite a distinctive kart and I am certain that someone in the area will know where it is.