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.
More top news
A funeral is to be held outside in the US state of Georgia for Bobbi Kristina Brown, daughter of the late Whitney Houston and Bobbi Brown.
Experts have warned that Ash dieback's impact on millions of trees could have serious consequences for the landscape and wildlife.
White House officials said that the US intelligence community has confirmed the death of Afghan Taliban leader Mullah Omar.