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A report on the financial future of two hospitals in Peterborough and Huntingdon has estimated that the Department of Health is paying £1 million a week to keep the Peterborough and Stamford Hospitals Trust afloat.
Criticising the decision to build a new hospital, whilst hiring a private firm to run another one 24 miles away, the report found:
- Management consultants had been used at "great expense to little effect", with Peterborough and Stamford Hospitals Trust spending £9 million in the last two financial years
- The Peterborough and Stamford Hospitals Trust had accumulated the highest deficit in the highest in the NHS for 2011/12, of £45.8 million
She added that other trusts around the country were "struggling from bad PFI deals", and that patients may have to pay the price.
An independent committee has accused the Department of Health of making "catastrophic" decisions over the decision allow a new hospital in a city, while a private firm was being hired to run another one 24 miles away.
According to the Commons Public Accounts Committee, the Peterborough and Stamford Hospitals Trust had accumulated a deficit of more than £45 million by the end of 2011/12.
A report has criticised the Department of Health for the decision to build a new hospital and award a franchise to a private firm to run another one a few miles away.
According to the Commons Public Accounts Committee (PAC), the decision left two hospitals whose financial viability and future was in doubt.
They added that there had been a lack of oversight in building a private finance initiative (PFI) hospital in Peterborough and allowing Circle Healthcare to run the nearby Hinchingbrooke Hospital.