'Failed' NHS strategy criticised

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.

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'£26 million a year for next 30 years' to keep trust afloat

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.

The trust's financial position is now so serious that, even if it achieves challenging annual savings, it will still require significant financial support of up to £26 million a year for the next 30 years to remain viable.

– Stewart Jackson, Conservative MP for Peterborough, and a member of the committee

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